Johnson & Johnson agrees to pay $8.9 billion to settle claims alleging their talc products caused cancer, which they continue to deny.
Tuesday that the company has agreed to pay $8.9 billion over 25 years to settle "all current and future" claims that the company's baby powder and other cosmetic talc products allegedly caused cancer.
The company announced in the securities filing that its subsidiary LTL Management, Inc. will be re-filing for voluntary Chapter 11 bankruptcy to resolve the allegations. The filing is not an admission of wrongdoing and the company maintains its position that the talcum powder products are safe, according to the release.& Johnson and its other affiliates did not file for bankruptcy protection and will continue to operate their businesses as usual, the release added.
"The Company continues to believe that these claims are specious and lack scientific merit," Erik Haas, vice president of litigation at Johnson & Johnson, said in a statement, in part. "However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on [the company] and the system, with most claimants never receiving any compensation."
The announcement comes months after a federal appeals court ruled in January that the company could not use the bankruptcy court to resolve some 38,000 lawsuits that alleged the talc in its products caused ovarian cancer and mesothelioma, ABC NewsCritics had urged the court to reject the legal maneuver, fearing it could prompt other big companies to avoid bringing mass tort lawsuits before juries.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive: Johnson & Johnson considers refiling talc-liability bankruptcy after appeals-court defeatJ&J is exploring placing a subsidiary shouldering tens of thousands of talc lawsuits into bankruptcy proceedings for a second time, despite a court decision invalidating the legal maneuver.
Read more »
Johnson & Johnson Proposes Paying $9 Billion to Settle Talc LawsuitsBreaking: Johnson & Johnson has proposed to pay $9 billion to settle thousands of talc lawsuits, in what would be one of the biggest product-liability settlements ever
Read more »
Johnson & Johnson stock up 3% as company sets aside $8.9 billion to settle talc claimsJohnson & Johnson stock rose nearly 3% in the extended session Tuesday after the company said it was setting aside $8.9 billion to settle claims connected...
Read more »
Johnson & Johnson sets aside $8.9 billion to settle talc claims; stock up 3%Johnson & Johnson stock rises more than 3% in the extended session Tuesday after the company proposes to pay up to $8.9 billion to settle claims connected...
Read more »
Johnson & Johnson offers $9bn to settle talc claimsThe new settlement offer is a significant boost over the $2bn the firm had previously proposed.
Read more »
Chicago mayor's race runoff: Voters go to the polls in race that highlights Democrats' divideTwo candidates representing opposite ends of the Democratic party are on the ballot in the highly-watched Chicago mayoral runoff on Tuesday.
Read more »