Johnson & Johnson (J&J) has reached an agreement to pay an estimated $5.5 billion to settle thousands of lawsuits alleging that its baby powder and other talc-based products were linked to ovarian cancer, potentially ending one of the longest-running and most significant product liability battles in corporate history, Reuters reported.
The proposed settlement covers around 76,000 existing claims filed in federal and state courts across the United States, accounting for almost all remaining ovarian cancer lawsuits against the healthcare company. The deal will take effect only if at least 95% of eligible claimants agree to the settlement.
The agreement represents a major development in a legal dispute that has continued for more than a decade, involving multiple trials, appeals and three failed attempts by the company to resolve the cases through bankruptcy proceedings.
Why is J&J settling now?
Johnson & Johnson has consistently maintained that its talc-based products are safe, do not contain asbestos and do not cause ovarian cancer.
The company said its decision to settle does not mean it accepts the allegations but is aimed at bringing an end to years of expensive litigation.
"While we are confident the company would have ultimately 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," Erik Haas, J&J's Vice President of Litigation, said, according to Reuters.
The company expects to make payments of around $3 billion in 2027, with the remaining amount scheduled to be paid in 2028.
However, the final settlement figure could change.
Chris Seeger, one of the lead attorneys representing thousands of plaintiffs, told Reuters that J&J's total payout could rise beyond $7 billion depending on the number of claimants who choose to participate.
What were the allegations?
The lawsuits claimed that women developed ovarian cancer after using Johnson & Johnson's baby powder and other talc-based products over extended periods.
Many plaintiffs also alleged that the talc products contained asbestos, a substance known to cause cancer.
J&J has repeatedly denied these claims, stating that decades of scientific studies support the safety of its products.
The company discontinued sales of talc-based Johnson's Baby Powder in the US market in 2020 and replaced it with a cornstarch-based version.
Why is the settlement important?
The agreement could resolve almost all remaining ovarian cancer-related lawsuits against Johnson & Johnson at once.
Unlike previous bankruptcy proposals made by the company, the settlement would apply only to current claims and would not prevent future lawsuits from being filed.
Reuters reported that excluding future claims would allow more compensation to be distributed among existing plaintiffs and enable payments to be made within around 18 months rather than being stretched over several years.
A complicated legal battle
Johnson & Johnson's legal fight has included both favourable and unfavourable outcomes.
Before agreeing to the settlement, the company achieved several legal victories, including successful individual trial outcomes, decisions removing certain plaintiff lawyers and court rulings restricting some scientific evidence that could be used by claimants.
Reuters also reported that a federal judge recently questioned whether individual plaintiffs could prove that talc specifically caused their ovarian cancer, strengthening J&J's legal position.
Despite these legal successes, the company opted for a broad settlement to bring long-term uncertainty to an end.
What was the 'Texas two-step' strategy?
One of the most controversial phases of the litigation involved Johnson & Johnson's attempt to resolve the lawsuits through a strategy known as the "Texas two-step."
Under this approach, the company created a subsidiary that filed for bankruptcy in an effort to move all talc-related claims into a single settlement process.
The move faced strong criticism from plaintiffs, who argued that a financially stable company was using bankruptcy laws to reduce its liability.
Courts rejected all three bankruptcy attempts, allowing the lawsuits to continue in March 2025.
The proposed settlement will now be presented to claimants for approval.
If at least 95% of the approximately 76,000 eligible plaintiffs accept the agreement, Johnson & Johnson could finally resolve one of the largest product liability disputes in US corporate history.
If the required approval threshold is not reached, the company may once again face years of legal battles across courts in the United States.
