Lede

Johnson & Johnson wants to settle talc cases by using bankruptcy courts and is offering $8.9 billion to plaintiffs over 25 years.

Summary

• Johnson & Johnson is attempting for the second time to use bankruptcy courts to settle tens of thousands of talc cases claiming the products cause cancer.
• J&J’s LTL spinoff has filed for bankruptcy, offering $8.9 billion to plaintiffs over 25 years, which is $6.9 billion more than the initial $2 billion settlement.
• The company claims it has secured commitments from over 60,000 current claimants against J&J to support the resolution.
• Johnson & Johnson has long claimed that talcum powder products are safe to use and the settlement does not constitute an admission of wrongdoing.
• Resolving the claims through bankruptcy benefits both the company and the claimants, according to J&J's worldwide vice president of litigation, Erik Haas.
• Attorneys representing thousands of claimants basted the proposed bankruptcy, calling it a “sham deal” and saying it doesn’t cover most victims’ medical bills.