Johnson & Johnson Offers $505M Settlement with Talc Suppliers
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![A container of spilled baby powder isolated on yellow background.](https://www.drugwatch.com/wp-content/uploads/talc-powder-yellow.jpg)
Johnson & Johnson faces another legal hurdle in the ongoing talc saga – this time negotiating a multimillion-dollar settlement with its former talc suppliers Imerys Talc America and Cypress Mines Corporation.
The proposed settlement with the suppliers is worth $505 million.
Part of the money would go toward paying the miners’ settlement trust for talc claimants, according to court documents obtained by Fierce Pharma. The agreement details Johnson & Johnson’s first payment would be worth $225 million, followed by another $280 million from insurance policies.
Historically, Imerys was J&J’s main supplier for its cosmetic talc products like its talcum baby powder and Shower-to-Shower. Johnson & Johnson discontinued all of its cosmetic talc products after asbestos was found in its baby powder. The company maintains its products are safe and said it discontinued the items to avoid future litigation.
Imerys is oft named a co-defendant in J&J talcum powder lawsuits and faced over 14,600 lawsuits when it filed for bankruptcy in 2019. The majority of these cases alleged Imerys’ talc was contaminated with asbestos, a natural mineral known to cause mesothelioma, ovarian cancer and other serious health problems.
Formerly owned by Cypress Mines, Imerys is responsible for providing about 15% of the world’s talc.
Cypress Mines filed for bankruptcy in 2021, two years after Imerys. Both bankruptcy files are seen as a way to manage their liabilities in the thousands of lawsuits against Johnson & Johnson that allege its talcum powder products caused cancer.
Adding to the complexity, the two talc supply companies argued that indemnification policies were in place to shield them from J&J’s lawsuits, an issue the pharma company has denied.
J&J’s Latest Bankruptcy Plan for Talc Lawsuits
In its third attempt at bankruptcy to shield itself from talc liabilities, Johnson & Johnson’s subsidiary LTL Management is working on a settlement with ovarian cancer patients.
In May, J&J offered $6.5 billion to settle the ovarian cancer cases. In order to succeed, the plan needs support from 75% of plaintiffs, who are slated to vote on the issue by July 26. The settlement doesn’t cover cases claiming the products cause mesothelioma.
While some see the offer as a chance for swift compensation, others might find it insufficient.
“While no amount of money is ever enough for the horrific suffering these women have undergone, this is an opportunity to get money now and avoid many years of additional protracted litigation,” attorney Jim Onder told Reuters.
If the court approves the settlement, it would significantly reduce J&J’s financial liability for ovarian cancer claims and remove the cases from the legal system, saving the company millions in legal fees and potential future verdicts. Plaintiffs would receive compensation relatively quickly, avoiding lengthy and uncertain individual lawsuits.
The American Cancer Society lists talcum powder contaminated with asbestos as a risk factor for cancer if it’s inhaled. However, research on the effects of uncontaminated talc, and the link between topically applied talcum powder and ovarian cancer, remains inconclusive.
Johnson & Johnson faced 57,624 pending talc lawsuits in multidistrict litigation in New Jersey as of July 2024. A federal bankruptcy judge dismissed two previous bankruptcy attempts by J&J’s subsidiary.