Johnson & Johnson's Talcum Powder lawsuit wins key move in support of $6.5 billion settlement

Johnson & Johnson has cleared a key hurdle in moving forward with a $6.5 billion settlement for baby powder compensation, according to people familiar with the matter. The agreement aims to settle thousands of lawsuits alleging that its baby powder products cause cancer.

In a secret ballot through late July, more than 75% of the group agreed with J&J's proposal, Bloomberg said, citing people familiar with the matter who requested anonymity because the results had not yet been certified. Such an outcome would help the company's latest move to limit liability to a subsidiary it set up to settle lawsuits.

Clare Boyle, a spokeswoman for Johnson & Johnson, declined to comment on the statistics. As lawsuits mounted, the company hired a consulting firm to organize a vote on the settlement and tally the results. The lawsuit is still ongoing, and J&J's efforts to settle it still face significant hurdles.

While plaintiffs opposed to the terms of the settlement could still pose a significant legal challenge, the voting milestone would set the stage for the J&J unit to ask a judge again to grant it bankruptcy protection. A federal appeals court in New Jersey, where J&J is based, rejected two of the company's previous applications.

Johnson & Johnson established a subsidiary, LTL Management, in October 2021 to assume all product liability. The subsidiary then filed for bankruptcy, putting the litigation on hold.

J&j has faced thousands of lawsuits over allegations that its baby powder, made from talc containing asbestos, can cause cancer when used over time. Asbestos is a known carcinogen and has been linked to deadly mesothelioma. While Johnson & Johnson has denied problems with the product, it stopped selling talc-based baby powder in the United States and Canada in May 2020.