Johnson & Johnson to pay £4.1bn to settle lawsuits alleging talc products cause cancer

Medical giant Johnson & Johnson has offered to pay up to $5.5billion to resolve tens of thousands of lawsuits in the US that claim its talcum powder causes ovarian cancer.The New-Jersey-based company, well-known for its baby powder, has proposed the settlement, which is the equivalent to £4.14billion, in an attempt to turn the page on the long-running legal battle in the US. It comes ahead of a potential trial in the UK in 2028.The business described the claims as 'meritless' and denied its talcum-based products caused cancer.It changed the formula of its baby powder from talcum to cornstarch in the US in 2020 and then globally in 2023.The settlement covers around 76,000 claims. It will see around £2.26billion paid out in 2027 and further payments in 2028.But lawyers representing those fighting against Johnson and Johnson believe more could ultimately be paid out as the settlement is uncapped. Johnson & Johnson: 'This resolution allows the company ⁠to put this matter behind it'Chris Seeger, one of the lawyers representing claimants in the case, said the amount could reach a total of £5.26billion.J&J's vice president of litigation, Erik Haas, said the settlement means the company can move on.He said: '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.'The company added: 'Studies show talc is safe, does not contain asbestos and does not cause cancer.'Lawyer Seeger said this update means his clients will 'receive fair and meaningful compensation.''More than a decade of protracted litigation and three failed bankruptcies has left tens of thousands of women and their families waiting far too long for relief,' he added.For the proposal to be finalised, legal firms representing 95 per cent of the claims in US courts must accept.Johnson & Johnson previously attempted a strategy of filing bankruptcies through a shell-company subsidiary in order to settle the cases – but these bankruptcies were dismissed.What it means for British Johnson & Johnson claimIn Britain, more than 3,000 people filed lawsuits at the High Court last year claiming that they or a family member developed ovarian cancer or mesothelioma – a form of cancer mainly caused by asbestos exposure – as a result of using the baby powder between 1965 and 2023.J&J's consumer business Kenvue – which owns well-known brands including Band-Aid, Listerine and Calpol – holds the liability for the baby powder outside North America. The business was split off from J&J in 2023.The claim in the UK alleges the company knew its talc products were contaminated with asbestos but kept selling them. Lawyers say the claim could amount to around £1 billion.A trial is set to begin in February 2028.Tom Longstaff, partner at KP Law, who is leading the group action in England and Wales said the US settlement 'provides some measure of finality to those who have suffered, and their dependents, with substantial compensation.'He added: 'This deal does not affect the claims being pursued in England and Wales, Scotland or in other jurisdictions around the world, those claims will continue. 'I can't predict what Johnson & Johnson are going to do in future; my job is to represent the interests of claimants here and achieve justice as quickly as possible. If that means taking the case to trial, which starts in early 2028 that is what we will do.'If there is a settlement scheme in the UK, we will advise our clients accordingly - but that is a decision for Johnson & Johnson.'Kenvue said it would continue to defend itself against claims outside of the US.A Kenvue company spokeswoman said: 'We sympathise deeply with people living with cancer and understand that they and their families want answers - that's why the facts are so important. 'The safety of Johnson's Baby Powder is backed by years of testing by independent and leading laboratories, universities, and health authorities in the UK and around the world.'The high-quality cosmetic grade talc that was used in Johnson's Baby Powder was compliant with required regulatory standards, did not contain asbestos, and does not cause cancer.'DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you