Johnsons & Johnsons Reach Settlement
On Tuesday, the New Jersey-based pharmaceutical company Johnson & Johnson reached a settlement in a case brought against them by 42 American states.
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A spokesperson for the company released a statement confirming the agreement.
American Citizens File Lawsuits
Over the last decade, thousands of lawsuits have also been brought against J&J by citizens who claim their talc products cause severe illnesses.
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According to those affected, J&J’s talc powders led to a cancer diagnosis. Many of the cases are set to go to trial this year.
Forced to Discontinue Baby Talc
Over the past ten years, J&J has been at the center of the media’s attention, with many claiming the company blatantly disregarded concern for consumers’ health.
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While the company continues to contend its products are safe to use, in 2020, it discontinued the sale of its talc-based baby powder in North America.
American States Go after J&J
With the reports of potential health risks associated with talc-based products, it wasn’t long before American states began their own investigations.
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In October, J&J revealed that 42 U.S. states and Washington D.C. were working on a joint investigation of the misleading marketing campaigns used by the pharmaceutical company.
J&J Agree to $700 Million Settlement
J&J initially set aside $400 million last year in hopes that it would be enough to settle the claims brought forth by the U.S. states.
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However, this week, Joseph Wolk, CFO of Johnson & Johnson, announced that the company will pay out over $700 million to settle the investigations.
Spokesperson for J&J Speaks Out
Erik Haas, vice president of litigation for J&J, spoke about the settlement during a recent interview without confirming the actual amount.
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“Consistent with the plan we outlined last year, the company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation,” he said.
Erik Haas Confirms J&J Leak Is True
Speaking in reference to the settlement fee, Haas states that the previously released leak was accurate.
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“As was leaked last week, that progress includes an agreement in principle that the Company reached with a consortium of 43 State Attorneys Generals to resolve their talc claims,” he said.
J&J Tried to Offload the Blame
Bloomberg reported on the settlement earlier in the month, claiming that J&J tried to offload the blame onto its subsidiary, LTL Management.
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According to reports, J&J tried to move the liabilities to the unit and have it file for Chapter 11 bankruptcy protection.
Judges Refuse Bankruptcy Request
In July, J&J had their second bankruptcy request denied.
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A New Jersey-based judge argued that the subsidiary, LTL Management, couldn’t show evidence to suggest they were in financial distress.
J&J Set to Pay Out $8.9 Billion
According to reports, LTL Management was denied an earlier request for bankruptcy by the U.S. appeals court back in April.
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As J&J has failed to file for bankruptcy twice in less than a year, the company has now proposed to pay out an astonishing $8.9 billion to customers in response to the talc claims.
Third Attempt at Bankruptcy
Last year, J&J confirmed they would attempt to file for bankruptcy for a third time.
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Hass also confirmed that J&J would ask the Supreme Court to assist them in overturning the previous decision that prohibited LTL Management from entering bankruptcy.