Johnson & Johnson announced on Tuesday that it has agreed to pay $8.9 billion over 25 years to resolve tens of thousands of lawsuits accusing the company’s talc-based baby powder of causing cancer.
The company said it had secured the support of the more than 60,000 parties that have filed lawsuits against Johnson & Johnson on the agreement, which will go toward resolving “all current and future talc claims.”
The agreement comes as part of a Johnson & Johnson subsidiary’s efforts to re-file for Chapter 11 bankruptcy protection with the U.S. Securities and Exchange Commission (SEC).
However, the company emphasized that its settlement does not constitute an admission of wrongdoing, continuing to reject the allegations that its talc-based baby powder caused ovarian cancer and mesothelioma.
“The Company continues to believe that these claims are specious and lack scientific merit,” Erik Haas, Johnson & Johnson’s worldwide vice president of litigation, said in a statement. “However, as the Bankruptcy Court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.”
“Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, 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,” Haas added.