Johnson & Johnson Seeks $9 Billion Settlement, stock rises
Pharma on the trail again, as J&J seeks resolution in the biggest settlement Lawsuit in modern history!
Lawyers for thousands of plaintiffs say they support the proposal, which the bankruptcy court must approve
Tweet on J&J settlement LawsuitÂ
Johnson & Johnson Seeks $9 Billion Settlement of Talc Lawsuits
J & J has proposed paying at least $8.9 billion to thousands of people who sued the company alleging that their use of J&J’s talc-containing powders caused cancer, via @WSJ #pharmahttps://t.co/WZpKAHvzUn
— The_Journalbiz (@the_journalbiz) April 5, 2023
WSJ on J&J about the settlementÂ
Johnson & Johnson has proposed paying at least $8.9 billion to thousands of people who sued the company alleging that their use of J&J’s talc-containing powders caused cancer, in what would be one of the biggest product-liability settlements ever.
The company also said Tuesday its LTL Management LLC unit, which J&J had established to deal with the litigation, has refiled for bankruptcy protection to seek approval of the plan to make the payments over 25 years.
If a bankruptcy court and a large majority of plaintiffs approve the moves, J&J could resolve thousands of lawsuits that have shadowed the company for the last several years, damaging the company’s reputation.
Without a court-approved settlement, J&J could have faced defending itself against myriad lawsuits across the U.S., a process that could have taken years.
J&J, which didn’t admit wrongdoing, said its proposal has the support of the vast majority of claimants, more than 60,000 people. Bankruptcy law requires that 75% of voting claimants must vote in favor of the plan.
A group of plaintiffs’ law firms, who say they represent nearly 70,000 people with filed or pending claims against the company, said they supported J&J’s proposed settlement.
Johnson & Johnson said it would post a first-quarter charge of $6.9 billion, after previously booking $2 billion when LTL filed for bankruptcy protection in 2021.
J&J shares rose 3% in trading on the New York Stock Exchange on Wednesday morning.
