Johnson & Johnson Sees $5.5B End to Its Headache

Johnson & Johnson is moving to close a bruising legal chapter with a proposed $5.5 billion payout to resolve nearly all remaining lawsuits linking its talc-based products to ovarian cancer. The deal, announced Monday, hinges on 95% of claimants signing on and could take months to finalize. The company offered nearly $9 billion to settle almost 80,000 claims just three years ago, but it was not approved by a judge. The new deal follows recent courtroom setbacks for plaintiffs, including a federal judge questioning the claim that talc specifically caused ovarian cancer and the disqualification of a major plaintiffs' firm, reports the Wall Street Journal.

J&J maintains the claims "lack scientific merit," but says it will commit up to $3 billion in 2027, with the rest to follow after 2028. The settlement would wrap up litigation that has stretched more than a decade and survived three failed J&J attempts to corral the cases through bankruptcy. Chris Seeger, an attorney representing 2,500 claimants who helped negotiate the settlement, says there are specific values assigned to various cancer claims and no cap on J&J's payout, which could end up topping $7 billion, per NBC News. J&J previously settled most claims alleging its talc contained asbestos and caused a rare and aggressive cancer known as mesothelioma.