New Delhi: Johnson & Johnson, one of America’s largest pharmaceutical companies, has offered US $ 890 million (about Rs 73,086 crore) on Tuesday to end years-old lawsuits, in which it was claimed that the company’s talcum powder causes cancer.
According to the New Jersey-based company, this is a proposed settlement, subject to court approval. The company says that Cosmetic Talc will equally effectively settle all claims arising out of the litigation.
If the settlement is approved by the court and a majority of the plaintiffs, the $890 million settlement would be one of the largest settlements ever in the United States. Agreements of this level have so far only been made by tobacco companies and, more recently, opioid manufacturers.
What are the allegations, what has happened so far?
There are thousands of lawsuits pending against Johnson & Johnson. It is alleged that their talcum powder contains traces of ovarian cancer-causing asbestos. The company never admitted any wrongdoing, but in May 2020 it stopped selling its talc-based baby powder in the US and Canada.
Eric Haas, vice president of litigation at Johnson & Johnson, said in a statement, “The company believes these claims are false and lack scientific facts.”
According to Johnson & Johnson, it is ready to pay US $890 million to thousands of claimants over the next 25 years through its subsidiary LTL Management LLC. LTL Management LLC was formed to handle these claims and filed for bankruptcy protection.
