U.S. Government Seeks $1 Billion Reimbursement in J&J Talc Case

The U.S. Department of Health & Human Services is pursuing over $1 billion from Johnson & Johnson for alleged cancer-causing talc products. Government agencies contest J&J's $10 billion settlement proposal, citing potential impacts on reimbursement rights, while J&J seeks to resolve ongoing lawsuits through bankruptcy proceedings.

The U.S. Department of Health & Human Services aims to secure over $1 billion from Johnson & Johnson. This comes as the company faces allegations that its talc products, including baby powder, have led to cancer for numerous patients.

Both the U.S. Department of Health & Human Services and the Department of Veterans Affairs have expressed opposition to J&J's proposed $10 billion settlement covering ovarian cancer lawsuits, warning it might affect federal reimbursement claims. Bethany Theriot, a Justice Department attorney, highlighted that under the Medicare Secondary Payer law, HHS could claim $1.1 billion in reimbursements.

Johnson & Johnson, which has consistently refuted claims linking its talc products to cancer, is working towards a comprehensive $10 billion settlement. Opposition to this plan stems from various stakeholders, including some cancer victims, insurers, and the U.S. Trustee's office, although a significant number of plaintiffs support the proposal. The firm's bankruptcy strategy is set for court consideration in February.

(With inputs from agencies.)