J&J receives plaintiff backing for a settlement of $6.5 billion for baby powder

According to the Bloomberg report, more than 75% of those present supported J&J's plan in a private vote that ended in late July. This result, while not yet formally acknowledged, would support the business's endeavours to control its obligations by means of a division established especially to deal with these litigations.

As the number of cases increased, J&J hired a consulting firm to oversee the voting procedure and compile the outcomes. Even with this progress, the litigation is still ongoing, and the corporation continues to encounter significant obstacles when attempting to reach a settlement.

Claims that the talc-based powder caused ovarian and other gynaecological malignancies are covered by the compensation offer. In May, J&J declared that it had addressed 95% of the accusations that mesothelioma, a disease that affects the tissues surrounding the heart and lungs, was caused by asbestos contamination in their baby powder.

For more than a century, the pharmaceutical behemoth has steadfastly argued that it marketed its talc-based powders responsibly and that they did not cause cancer. Last year, the talc-based version was withdrawn by the manufacturer and was replaced with a cornstarch-based version.

This vote might pave the way for the J&J unit to reapply to a judge for bankruptcy protection, even though plaintiffs who disagree with the terms of the settlement deal could still file legal challenges. A federal appeals court has previously turned down two attempts to get similar protection in New Jersey.

Bloomberg reports that J&J's current plan calls for paying $6.5 billion over 25 years to settle claims for ovarian and other gynaecological malignancies, both present and prospective.

In addition, the business has previously settled legal claims regarding talc for almost $5 billion. These claims include those connected to mesothelioma and other diseases and accusations of illegal marketing by US states. According to J&J, a significant number of lawsuits may still be brought forward.

(Sources: investing.com, bloomberg.com)