US pharmaceutical company Johnson and Johnson on Tuesday proposed a USD 8.9 billion settlement to resolve years-old lawsuits against them claiming that its talcum powder products cause cancer. According to the reports, the New Jersey company still waiting for approval on the proposal from the bankruptcy court.If approved by the US court and the majority of the plaintiffs, the USD 8.9 billion payouts would be one of the biggest-ever product settlements in the United States. After this, it will rank alongside those entered into by tobacco companies and more recently, opioid makers.Johnson and Johnson have been facing many lawsuits over their talcum powder containing traces of asbestos blamed for causing ovarian cancer. However, the company has always denied the claims and never admitted wrongdoing. But eventually, they stopped selling their talcum brand in the United States and Canada in May 2020.Erik Hass, Vice president of litigation at Johnson and Johnson said that the claims made against the company are all specious and lack scientific merit. The company claims that the amount of USD 8.9 Billion would be paid to thousands of claimants over 25 years through LTL Management LLC, which is a subsidiary of Johnson and Johnson. Reportedly, the subsidiary was set up to address the claims and for bankruptcy protection. Hass also claims that fighting the lawsuits in the case would take decades and will be expensive.However, according to the company, the revised amount is being backed by more than 60,000 parties that have filed lawsuits alleging harm from Johnson and Johnson talcum powder.Under a proposal announced Tuesday, a Johnson and Johnson subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in the history of the US.Johnson and Johnson earlier also suggested compensationIn response to claims that its cosmetic talc contributed to gynaecological malignancies, Johnson and Johnson had earlier suggested a USD 2 billion compensation. The newest proposed payment, according to the firm, “is neither an admission of guilt nor a sign that the corporation has modified its long-standing position that its talcum powder products are safe.” The company and its stakeholders will benefit most from having this issue resolved as soon as feasible, according to Johnson and Johnson.The company recall the talcum powderAfter facing thousands of lawsuits, Johnson and Johnson, in August last year announced that they would discontinue the product globally following allegations that their talcum powder caused Ovarian cancer due to the presence of asbestos. As per reports, the talcum manufacturer recalled 33,000 packs of Johnsons baby powder in October 2019 after FDA found a small amount of asbestos in the talcum powder.Ruling by Maharashtra High CourtThe Bombay High Court on March 11, disallowed Maharshtras ban on Johnson and Johnson plant and allowed them to manufacture and sell the baby powder. During the sample testing by Food and Drug Administration, it was found that the pH levels in the talcum powder are high compared to the allowed limits. The High Court also criticised Maharashtras FDA for the delay in testing and said that ban on the company was an extreme action.What is the Johnson and Johnson case aboutIn India, Johnson and Johnson manufactures baby powder at its Mulund plant in Maharashtra. According to the reports by Food and Drug Administrations, the samples of powder made at the plant were containing more pH levels than specified. The case took a move when the Maharashtra government concerns three orders, on September 15, 2022, the licence was cancelled. Then on September 20, 2022, the manufacturing and sale of the baby powder were stopped, and on October 15, 2022, the ministers issued the order to uphold the previous two orders.Despite rejecting all the claims, Johnson and Johnson has paid billions to settle the claims over its powder till now.
