Johnson & Johnson tentatively agrees to pay $700m to states in baby powder investigation

Johnson & Johnson (J&J) has “tentatively agreed” to a $700 million settlement following a 42-state investigation into its marketing of talc-based baby powder—though it still leaves thousands of personal-injury lawsuits unaddressed.

More than 50,000 personal-injury lawsuits have been filed against J&J, some alleging that the company’s talc-based powders including Johnson’s Baby Powder contained asbestos, which causes a rare form of cancer, and others alleging a link between the powders and ovarian cancers that developed, according to the Wall Street Journal. J&J has previously stated that its products were safe, and that they don’t contain asbestos or cause cancer.

In 2023, J&J proposed an $8.9+ billion settlement for personal-injury lawsuits filed across the country, separate from the new $700 million settlement to the states, and for a bankruptcy plan. The proposal was rejected, and one plaintiff described the proposal as “a shameful attempt to run out the clock on people dying of cancer and convince some lawyers to give up.”

J&J has ceased its sale of talc-based powders. Last year, J&J spun off a separate company called Kenvue, which sells a version of Johnson’s Baby Powder made with cornstarch.

According to the Wall Street Journal, J&J has “sought to use Chapter 11 bankruptcy cases to settle the mass” lawsuits, though courts have repeatedly denied the ruling, claiming that the company was not in “sufficient financial distress.”

Erik Haas, J&J’s worldwide VP of litigation, has stated that J&J would be requesting the US Supreme Court to overturn lower court rulings that have denied bankruptcy protection.

J&J is still in the process of resolving litigation related to its talc-based powders.