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Johnson & Johnson Agrees To $700 Million Settlement

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Johnson & Johnson has agreed to pay $700 million in a settlement to resolve allegations that it misled customers about the safety of its talcum-based powder products.

The company reached the agreement with 42 U.S. states and Washington D.C.

“Attorney General Kwame Raoul, as part of a bipartisan group of 43 attorneys general, today announced a nationwide settlement with Johnson & Johnson (J&J) to resolve allegations the company deceptively promoted and misled consumers in advertisements related to the safety and purity of some talcum powder products, including baby powder and body powder,” a press release from Illinois Attorney General Kwame Raoul’s office stated.

“Consumers rely on accurate information when making decisions about which products to purchase for their families. Any company – no matter how large – must be held accountable when laws protecting consumers are broken and their trust is violated. I will continue to work to ensure consumers are protected from false advertising, scams and dangerous products in the marketplace,” Raoul said.

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Per CBS News:

As part of the settlement, which is still pending judicial approval, the health products giant will permanently stop the manufacturing, promotion and sale of all of its baby powder and other body and cosmetic products that contain talcum powder. That includes Johnson’s Baby Powder and Johnson & Johnson’s Shower to Shower. The company decided to pull talc-based powders off the market in North America in 2020.

J&J will make four settlement payments, starting at the end of July, to 42 states and Washington, D.C., according to the settlement.

In a statement, J&J’s worldwide vice president of litigation, Erik Hass, said the company “continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation. That progress includes the finalization of a previously announced agreement that the Company reached with a consortium of 43 State Attorneys Generals to resolve their talc claims. We will continue to address the claims of those who do not want to participate in our contemplated consensual bankruptcy resolution through litigation or settlement.”

“Today, Attorney General Aaron Ford announced that he and 42 other attorneys general have reached a $700 million nationwide settlement to resolve allegations related to the marketing of Johnson & Johnson’s baby powder and body powder products that contained talc,” the Nevada Attorney General’s office stated.

“I, alongside 42 other states, reached a $700 million settlement with Johnson & Johnson, with nearly $15 million going to Maryland, regarding allegations of deceptive marketing. Certain talc-based products were marketed as safe, but some were tainted with asbestos, possibly causing serious health issues. My office is dedicated to safeguarding Marylanders from harmful products,” Maryland Attorney General Anthony Brown announced.

NBC News reports:

J&J did not admit wrongdoing in settling with the states, which were led by Florida, North Carolina and Texas, and has said its talc products are safe and do not cause cancer. The company announced a settlement in principle in January.

“This is a major advancement for consumer product safety,” Florida Attorney General Ashley Moody said in a statement.

J&J still faces tens of thousands of talc lawsuits, and a class action accusing the New Brunswick, New Jersey-based company of fraudulently hiding their dangers from shareholders.

As of March 31, about 61,490 people were still suing J&J over talc. Most were women with ovarian cancer, while a smaller number had mesothelioma, a type of cancer linked to asbestos.

J&J stopped selling talc-based baby powder globally last year, switching to corn starch as the main ingredient. It has maintained that its products do not contain asbestos.

The company has twice tried to resolve the litigation by placing into bankruptcy a subsidiary it created to contain its talc liabilities, but courts rebuffed both attempts.

On May 1, J&J proposed a $6.48 billion settlement to resolve most of the litigation through a third bankruptcy filing. It has set aside an $11 billion reserve to cover all talc liabilities.

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