A subsidiary of Johnson & Johnson is now proposing paying approximately $6.48 billion over 25 years as part of a settlement to cover allegations that its baby powder containing talc caused ovarian cancer.
The lawsuits filed against J&J had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.
J&J said that the reorganization plan for the subsidiary that was being announced on Wednesday was significantly different from the previous reorganization that was announced. Those differences include a three-month solicitation period during which ovarian claimants can vote for or against the plan. This is something that was denied in prior bankruptcy cases, the company said. And if 75% of claimants vote in favor of the plan, a subsidiary may file a “prepackaged” Chapter 11 bankruptcy to secure its confirmation.
The remaining pending personal injury lawsuits that relate to mesothelioma will be addressed outside of the plan.
J&J said it continues to stand by the safety of its products and reiterated that none of the talc-related claims against it have merit.
