Johnson & Johnson reaches $5.5 billion settlement in talc ovarian-cancer lawsuits

Johnson & Johnson said on Monday it has negotiated a settlement that would pay roughly $5.5 billion to resolve tens of thousands of lawsuits alleging its baby-powder and other talc products caused ovarian cancer. The agreement covers about 76,000 claims, including those consolidated in federal court in New Jersey and related state-court cases, and would address nearly all outstanding lawsuits against the company.

The settlement must be accepted by at least 95% of the ovarian-cancer claimants in state or federal court before it becomes final. J&J maintains that the plaintiffs have not proven a causal link between its talc products and cancer, and described the deal as a way to end the litigation efficiently.

"While we are confident the company would ultimately have prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives," said Erik Haas, worldwide vice president of litigation at Johnson & Johnson.

The company plans to make an initial payment of $3 billion in 2027, with additional payments in 2028, though the total amount could rise depending on claimant participation. Plaintiffs’ attorney Chris Seeger, who helped negotiate the deal, said the settlement could ultimately exceed $7 billion because it does not set a hard cap on payouts.

"Our clients are going to be happy with it," Seeger told Reuters.

J&J stopped selling talc-based baby powder in the United States in 2020, switching to a cornstarch formulation, and has previously settled many cases alleging asbestos contamination in its talc. The new agreement applies only to existing claims and does not cover future lawsuits, allowing the company to complete payments within about 18 months rather than over a decade.