Johnson & Johnson, a US-based giant in medical products, has announced a plan to allocate 8.9 billion dollars to address talc-related claims tied to its products. The move targets both current disputes and those expected to arise in the future. The company intends to resolve these matters through the bankruptcy route by reorganizing its subsidiary, LTL Management LLC, as part of ongoing proceedings. Earlier statements from the firm indicated a willingness to settle for around 2 billion dollars before this more expansive plan emerged.
If approved, the proposed settlement would mark the largest monetary resolution yet in the area of product quality claims managed within a bankruptcy framework. The Financial Times reported on the development, citing lawyers involved in the case as the source of the figures and analysis. This context highlights the scale of the potential agreement and the strategic use of bankruptcy protections to manage mass claims in the consumer health sector.
Earlier corporate communications noted that the talc-based baby powder line had been discontinued in the United States and Canada in 2020. Since that decision, tens of thousands of lawsuits have been filed, with plaintiffs alleging ovarian cancer linked to talc-containing products used over many years. Johnson & Johnson has consistently defended the safety of its products and maintained that its goods meet all applicable safety standards. The evolving legal landscape surrounding talc claims continues to influence corporate risk management, regulatory considerations, and the company’s public messaging about product safety and consumer trust. [citation: Financial Times reporting; statements from legal counsel involved in the case]