Johnson & Johnson adds $1.1 billion to proposed talc settlement
Johnson & Johnson adds $1.1 billion to proposed talc settlement
Johnson & Johnson (JNJ.N) plans to pay an additional $1.1 billion to resolve tens of thousands of legal actions alleging its baby powder and other talc products caused cancer, two people familiar with the matter said.
The increase would boost the size of the settlement to more than $9 billion paid over 25 years. J&J on Wednesday said it reached an agreement with a plaintiffs’ lawyer representing 12,000 clients to recommend the settlement offer to them, adding to support already received from other claimants.
The healthcare giant is preparing to have a subsidiary declare bankruptcy to finalize the proposed settlement before the end of this month, one of the people said. J&J would continue operating without filing for Chapter 11. The company maintains its talc products are safe and do not cause cancer.
The timing of a bankruptcy filing could change depending on how the counting of additional votes unfolds.
J&J said Allen Smith, the plaintiffs’ lawyer now supporting its plan, agreed to the settlement offer in exchange for “additional monetary and non-monetary benefits for all talc claimants” in a bankruptcy plan it expects a judge to later approve.
J&J declined to comment on the amount of additional money it plans to pay and did not respond to an inquiry regarding the timetable for a subsidiary filing for bankruptcy protection.
