Wachiwit/iStock Editorial via Getty Images Johnson & Johnson ( NYSE: JNJ ) has reportedly made headway in its long-running battle to settle thousands of lawsuits filed over the safety of its talc-based baby powder. According to a Bloomberg report , over 75% of the claimants have voted in favor of a proposed settlement by secret ballot. The settlement would pay $6.
5B over 25 years to resolve current and future claims that the product caused gynecological cancers such as ovarian cancer. J&J has already paid around $5B to resolve allegations that the product was improperly marketed and caused cancers such as mesothelioma. The company has cautioned that it may face thousands more claims in the future, Bloomberg said.
J&J moved the talc baby powder assets into a subsidiary called LTL Management in an effort to shield the parent company from liability. J&J has twice sought to file Chapter 11 for the subsidiary as a way to push the plaintiffs into a group settlement, but has been rebuffed by the courts, according to Reuters. The 75% vote in favor of the settlement would allow J&J to seek an expedited Chapter 11 filing for the unit, according to the reports.
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