U.S. multinational Johnson & Johnson announced Tuesday the company would pay nearly $9 billion over the next 25 years in an effort to settle claims involving tens of thousands of people who allege its talc products caused their cancer.
Johnson & Johnson announced the settlement proposal in a securities filing.
Attorneys for the plaintiffs called the settlement a "significant victory." The company also revealed in its securities filing that its subsidiary LTL Managementhad refiled for Chapter 11 bankruptcy protection after an unsuccessful initial attempt.
In the agreement, Johnson & Johnson said it would pay out $8.9 billion via a trust enabled by the bankruptcy filing.
Erik Haas, Johnson & Johnson’s Global Vice President of Litigation, said, “Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity.”
The New York Times reportedthat executives with the company knew for decades about the possible risks of asbestos exposure from talc products like those sold by their company.
Johnson & Johnson had previously said it would take the case to the Supreme Court.
Between 2020 and 2021 the company paid $7.4 billion in expenses stemming from litigation on the matter, according to a previous filing.
