J&J’s Talc Turmoil: Court Rejects US$10 Billion Settlement

THE WHAT? Johnson & Johnson’s latest bid to settle tens of thousands of talc-related lawsuits has been rejected by a U.S. bankruptcy judge. The proposed US$10 billion deal was intended to resolve ongoing claims that the company’s iconic baby powder and other talc-based personal care products contained asbestos and caused ovarian cancer.

THE DETAILS This setback marks the third time J&J’s legal strategy to place its talc liabilities into bankruptcy has failed. More than 60,000 claimants allege J&J’s baby powder and other talc products caused ovarian cancer, despite the company’s longstanding insistence that its formulations are safe. Opponents argue J&J is not in financial distress, questioning the appropriateness of using bankruptcy to settle these suits. While J&J plans to litigate in the regular court system, it has also stopped selling talc-based baby powder in the U.S. since 2020.

THE WHY? Consumer trust in talc-based personal care products has been shaken, with safety concerns taking center stage in an era that demands ever-greater product transparency. J&J’s repeated court challenges underscore how central health and safety claims have become to brand reputation in the cosmetics and personal care space.

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