11,000 More Lawsuits Hit J&J Over Baby Powder-Cancer Link

11,000 More Lawsuits Hit J&J Over Baby Powder-Cancer Link

Introduction

Johnson & Johnson is experiencing a significant increase, of at least 28%, in new lawsuits alleging that its talc-based baby powder causes cancer.

This surge in litigation has occurred just over five weeks after the company's attempt to resolve these cases through bankruptcy court was rejected.

A judge in New Jersey overseeing federal talc litigation revealed that more than 11,000 new complaints have been filed, as per a court transcript from a September 6 hearing. Johnson & Johnson had previously sought to settle around 40,000 talc-related lawsuits for approximately $9 billion by using the bankruptcy of its LTL Management unit, which was established to address health claims linked to talc containing a potentially harmful substance. However, this bankruptcy case was dismissed on July 28.

This increase in lawsuits is likely to complicate Johnson & Johnson's efforts to resolve nearly a decade of legal actions alleging that their talc-based Baby Powder leads to ovarian cancer and asbestos-related cancer. The company, which has appealed the dismissal of the bankruptcy case, is now preparing to defend itself in a state-court trial in California scheduled to begin next month.

Experts suggest that Johnson & Johnson may need to significantly increase its settlement offer to resolve these cases effectively. The company faces a growing challenge in the talc litigation, and the situation appears to be worsening.

Johnson & Johnson has responded to the surge in lawsuits, stating that it wasn't unexpected since new cases were not allowed while the LTL unit was in bankruptcy proceedings. The company is now prepared to defend itself in the tort system against these talc-related claims.

In 2020, Johnson & Johnson withdrew its talc-based powders from the US and Canada markets due to declining sales and replaced them with a cornstarch-based alternative. The company also pledged to remove all talcum powder-containing baby products worldwide by the end of the year.

Johnson & Johnson faces multiple jury trials early next year regarding allegations that its executives were aware of trace amounts of asbestos in talc since the 1970s but did not inform consumers or regulators. The company maintains that its talc-based products do not cause cancer and that it has appropriately marketed Baby Powder for over a century.

As part of its bankruptcy court strategy, Johnson & Johnson offered nearly $9 billion to resolve all current and future liabilities related to talc litigation. However, plaintiffs rejected this offer as financially inadequate. An appeals court ruled that Johnson & Johnson had misused the bankruptcy process in an attempt to reach a settlement.

Despite filing a second bankruptcy case in the hopes of reviving settlement opportunities, a judge in New Jersey dismissed it, concluding that the talc litigation did not create sufficient financial stress for Johnson & Johnson to justify using bankruptcy to resolve it. The company had pointed to a $4.7 billion jury verdict in a Missouri talc case in 2018 as an example of why it couldn't handle the litigation through the regular tort system. Ultimately, the company paid $2.1 billion to the 20 women involved in that case.

Over the past decade, Johnson & Johnson has faced numerous talc trials, with varying outcomes, including wins, losses, and settlements. As of February, the company reported facing 40,300 cases alleging that its talc-based powders cause cancer. With the addition of the 11,000 new cases, the total case count now stands at 51,300, not accounting for cases filed in state courts.