New Delhi: Johnson & Johnson, the American pharmaceutical giant, on Tuesday proposed an $8.9 billion settlement to resolve lawsuits from several years ago that alleged their talcum powder products were responsible for causing cancer, reported news agency AFP.
The New Jersey-based company said the proposed settlement, which still needs the approval of a bankruptcy court, "will equitably and efficiently resolve all claims arising from cosmetic talc litigation."
If the settlement is approved by both the court and the majority of plaintiffs, it will rank among the largest product liability settlements in the United States, comparable to those reached by tobacco companies and more recently, opioid manufacturers, AFP reported.
J&J has been facing numerous lawsuits related to talcum powder products that contained asbestos traces that were blamed for causing ovarian cancer. While the company has never admitted any wrongdoing, it halted the sale of its talc-based baby powder in the United States and Canada in May 2020.
"The company continues to believe that these claims are specious and lack scientific merit," Erik Haas, J&J's vice president of litigation, said in a statement.
AFP reported that J&J said the $8.9 billion would be paid to the tens of thousands of claimants over 25 years through a J&J subsidiary, LTL Management LLC, which was set up to address the claims and has filed for bankruptcy protection.
It said that LTL has "secured commitments from over 60,000 current claimants to support a global resolution on these terms."
An earlier settlement agreement involving LTL was overturned by an appellate court, and a new LTL bankruptcy filing and settlement must now be approved by a bankruptcy court.
J&J had previously offered a $2 billion settlement in response to allegations that its cosmetic talc products were linked to gynecological cancers.
The company said the newly proposed settlement is not "an admission of wrongdoing, nor an indication that the company has changed its longstanding position that its talcum powder products are safe."
"Nonetheless, resolving this matter as quickly and efficiently as possible is in the best interests of the company and all stakeholders," J&J said.
According to Haas, as per AFP, the settlement "allows claimants to be compensated in a timely manner, and enables the company to remain focused on our commitment to profoundly and positively impact health for humanity."