Johnson & Johnson has agreed to pay $5.5 billion to settle outstanding legal claims arguing its talc products caused ovarian cancer, an accusation the company’s lawyers say “lacks scientific merit.”
The New Jersey-based drugmaker has been fighting talc-related lawsuits for more than a decade and said the settlement will be applied only if 95 per cent of the remaining 76,000 claimants agree to it.
The company said in a statement Monday it has prevailed in the majority of cases to date that alleged its products caused ovarian cancer in plaintiffs and maintained its longstanding position that any claims of that nature are based on “junk science.”
The plaintiffs’ law firms confirmed the deal on Monday, saying it was a good resolution after a prolonged legal dispute.
Chris Seeger, a lawyer who represents about 2,500 clients with talc claims and helped negotiate the agreement, said the company could ultimately pay $7 billion or more.
The settlement assigns specific values to qualifying ovarian cancer claims but does not cap Johnson & Johnson’s total payout, he said.
“We got a fair settlement, and our clients are going to be happy with it,” Seeger said, Reuters reported.
A U.S. bankruptcy court judge denied a $9 billion settlement proposed by company subsidiary Red River Talc last year that would have been one of the biggest mass tort settlements in history.
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Johnson & Johnson decided not to appeal that ruling and chose to continue in court.
Last week, a federal judge ordered plaintiffs in the Johnson & Johnson case to explain why outstanding claims against the company should not be dismissed after witnesses failed to provide evidence of a link between cancer and the product.
“The Court’s order placed plaintiffs in an untenable position of having to present specific causation evidence to maintain their claims that does not exist,” said Erik Haas, worldwide vice-president of litigation, Johnson & Johnson.
“These claims lack scientific merit and were sustained only by unreliable expert opinions that could not survive rigorous judicial review,” Haas added.
As part of the settlement announced by the company this week, Johnson & Johnson will pay $3 billion next year, with subsequent payments not due until 2028.
“While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives,” Haas said.
Johnson & Johnson said that it previously settled about 95 per cent of lawsuits for mesothelioma, a cancer in the tissue surrounding organs such as the lungs and heart, all state consumer protection claims and all talc-supplier disputes and said the multi-billion dollar settlement “brings finality to this meritless 15-year litigation.”
The American Cancer Society says many studies in women have looked at possible links between talcum powder and ovarian cancer, noting that findings have been mixed, “with some studies reporting a slightly increased risk and some reporting no increase.”
“One of the problems with studying this issue is that ovarian cancer isn’t common. Because of this, even the largest studies done so far might not have been big enough to detect a very small increase in risk, if it exists,” it says.
The International Agency for Research on Cancer, which is part of the World Health Organization, classifies talc that contains asbestos as “carcinogenic to humans.”
A substance that causes cancer or helps cancer to grow is called a carcinogen. It also classifies talc as “probably carcinogenic to humans,” based on “limited” evidence for ovarian cancer in humans.
According to Health Canada, talc can cause damage to the lungs and difficulty breathing if loose powder product is inhaled.
It also says the chemical “may cause ovarian cancer when using products with talc in the genital area,” including body wipes, baby powder, diaper and rash creams, bath bombs or bubble bath products. Talc is on Canada’s Toxic Substances List and subject to preventive controls as it was found to be harmful to human health.
In 2018, the department said that it was considering measures to restrict the use of talc in cosmetics, natural health products and non-prescription drugs.
No health risks were found to be associated with talc products such as pressed powder makeup, dry shampoo, or foot powder; contact with skin; exposure from food; or ingesting products containing talc, such as natural health products and non-prescription drugs.
Johnson & Johnson discontinued its talc-based baby powder in North America and globally beginning in 2020.
Company shares rose more than two per cent before the market opened on Tuesday.
— with files from The Associated Press and Reuters
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