Johnson & Johnson says it will pay out $5.5B in sweeping talc deal that could end decade-long legal battle

Johnson & Johnson Announces $5.5 Billion Agreement to Resolve Ovarian Cancer Lawsuits

Johnson & Johnson said on Monday it would pay an estimated $5.5 billion to resolve approximately 76,000 lawsuits alleging that its talc-based baby powder and other talc products caused ovarian cancer. The proposed agreement covers claims consolidated in federal court in New Jersey as well as related state court cases and represents nearly all remaining talc claims against the company.

Plaintiffs’ law firms confirmed the terms on Monday. The settlement requires acceptance by 95 percent of the ovarian cancer claimants in state or federal court to become final. Johnson & Johnson previously settled the majority of claims alleging that its talc contained asbestos and caused mesothelioma.

Erik Haas, Johnson & Johnson’s vice president of litigation, stated that the ovarian cancer claims were meritless and that the company agreed to the resolution to obtain closure. Haas said the company remained confident it would have prevailed with further litigation, as it has in the vast majority of cases tried to date. This assertion regarding trial outcomes has not been independently verified in the reporting of the agreement. The resolution, he added, would allow the company to focus on developing medicines and devices.

Johnson & Johnson expects to pay $3 billion in 2027, with additional payments scheduled for 2028. The total amount could increase depending on participation levels. Chris Seeger, an attorney representing about 2,500 clients and involved in negotiations, said the company could ultimately pay $7 billion or more. The agreement assigns specific values to qualifying ovarian cancer claims without imposing an overall cap on Johnson & Johnson’s payout.

Seeger described the terms as fair for his clients. The settlement applies only to existing claims and does not cover potential future lawsuits, a distinction that distinguishes it from earlier bankruptcy proposals.

Court Proceedings and Prior Litigation

The agreement follows a series of court rulings favorable to Johnson & Johnson. These include victories in individual trials, the disqualification of certain plaintiffs’ counsel, and decisions limiting the testimony of experts retained by plaintiffs. Last week, a federal judge issued a ruling that questioned the ability of individual plaintiffs to establish specific causation between talc use and their ovarian cancer diagnoses.

Johnson & Johnson has maintained that its talc products did not cause cancer and did not contain asbestos. The company discontinued sales of talc-based baby powder in the United States in 2020 and replaced it with a cornstarch formulation.

Litigation resumed in March 2025 after a pause of more than three years. During that period, Johnson & Johnson pursued a corporate restructuring strategy involving three bankruptcy filings by a subsidiary, each of which was dismissed by courts. Prior to those bankruptcy attempts, the company recorded both losses and wins in talc trials. One notable verdict awarded damages to 22 women who alleged ovarian cancer from baby powder use; other verdicts were reduced on appeal or resulted in defense judgments.

Payment Structure and Scope

Unlike the bankruptcy proposals, the current agreement limits its scope to existing claims. Seeger noted that this approach made more funds available to current claimants than the bankruptcy framework and shortened the payment timeline to 18 months rather than spreading disbursements over more than a decade.

The deal does not address any future claims that might be filed by individuals who have not yet sued. Johnson & Johnson has not indicated whether it intends to establish a separate mechanism for such claims.

The agreement remains subject to the 95 percent participation threshold. If that threshold is not met, the settlement will not take effect and litigation could continue. Johnson & Johnson has not disclosed whether it has set aside additional reserves beyond the stated $5.5 billion estimate.