 "J&J subsidiary proposes paying $6.48 bn over 25 yrs to settle talc lawsuits")
A subsidiary of Johnson and Johnson is now proposing paying approximately USD 6.48 billion over 25 years as part of a settlement to cover allegations that its baby powder containing talc caused ovarian cancer.
The lawsuits filed against JandJ had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.
JandJ said that the reorganization plan for the subsidiary that was being announced on Wednesday was significantly different from the previous reorganization that was announced. Those differences include a three-month solicitation period during which ovarian claimants can vote for or against the plan.
This is something that was denied in prior bankruptcy cases, the company said. And if 75 per cent of claimants vote in favor of the plan, a subsidiary may file a prepackaged Chapter 11 bankruptcy to secure its confirmation.
The remaining pending personal injury lawsuits that relate to mesothelioma will be addressed outside of the plan.
JandJ said it continues to stand by the safety of its products and reiterated that none of the talc-related claims against it have merit.