J&J Prepares Massive Settlement for Talc Cancer Claims Amid Legal Battles

Johnson & Johnson is ready to support a $6.48 billion settlement offer to resolve thousands of lawsuits alleging its talc products caused cancer. The healthcare giant plans to seek bankruptcy protection through a subsidiary, aiming to cease ongoing and future cases. The final vote tally is awaited for court approval.

Johnson & Johnson is on the brink of announcing substantial support for a $6.48 billion settlement aimed at resolving tens of thousands of legal claims alleging that its Baby Powder and other talc products caused cancer, according to sources familiar with the matter.

The company plans to disclose that 75% or more of claimants have voted in favor of the settlement, a legal necessity for court approval, and will have a subsidiary seek bankruptcy protection to facilitate the deal. The outcome of these votes is pivotal as J&J strives to unify the claims under this agreement.

J&J maintains that its talc products are safe and free from cancer-causing agents, although it's setting the stage to consolidate claims into a bankruptcy plan to preclude future litigation. The healthcare giant's attempt marks its third try at a so-called 'Texas two-step' bankruptcy after previous rejections.

(With inputs from agencies.)