Editor’s Note: The recent $700 million settlement between Johnson & Johnson and 43 U.S. states over talcum powder litigation marks a pivotal moment in consumer protection and corporate accountability. This case highlights critical issues surrounding product safety, transparency, and the ethical responsibilities of corporations, especially within the pharmaceutical industry. As the settlement awaits judicial approval, it underscores the importance of accurate information and safety assurances for consumers, particularly regarding products used by families and vulnerable populations. Cybersecurity, information governance, and eDiscovery professionals will find the developments in this case particularly relevant as they navigate the complexities of corporate litigation and regulatory compliance.


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Industry News – eDiscovery Beat

Johnson & Johnson Reaches $700 Million Settlement Over Talcum Powder Litigation

ComplexDiscovery Staff

Johnson & Johnson, the pharmaceutical giant, has reached a $700 million settlement to resolve allegations that it deceptively marketed its talcum powder products, particularly Baby Powder and Shower to Shower, as safe for consumers despite evidence of health risks. This multi-state settlement involves 43 U.S. states, including New Jersey, New Hampshire, Maine, and Illinois, and awaits judicial approval in several courts, including the Chancery Division of Superior Court in Mercer County.

Allegations and Legal Actions

The legal action against Johnson & Johnson stems from claims that the company misled consumers about the safety and purity of its talc-based products. Internal documents revealed that the company was aware of potential contamination with carcinogenic asbestos and external studies that linked talc use to ovarian cancer and mesothelioma. Despite this knowledge, Johnson & Johnson allegedly continued to market these products as safe for daily use, including on female genitals.

“This egregious betrayal of consumer trust never should have happened,” stated New Jersey Attorney General Matthew J. Platkin, reflecting the sentiments of many state attorneys general involved in the lawsuit. Similarly, Illinois Attorney General Kwame Raoul emphasized the importance of accurate information for consumers, particularly when purchasing products for their families.

Financial Allocation

New Jersey stands to receive $30.2 million, Illinois $29 million, New Hampshire $6 million, and Maine just shy of $5 million from the settlement. Massachusetts is expected to get about $14.5 million, while Rhode Island will receive nearly $7 million. These funds are intended for consumer protection initiatives and to support public health efforts.

Johnson & Johnson’s Response

Johnson & Johnson, while not admitting any wrongdoing, agreed to cease the manufacturing, marketing, and sale of talc-based products in the United States. The company had already stopped using talc in its products for North American consumers in 2020 and plans to halt global sales of talc products. Erik Haas, Worldwide Vice President of Litigation at Johnson & Johnson, stated, “The Company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation.”

Continued Litigation

Despite this settlement, Johnson & Johnson faces ongoing lawsuits. In April 2023, the company earmarked nearly $9 billion to settle claims, addressing concerns from over 60,000 plaintiffs. The settlement amount was significantly increased from an earlier proposal of $2 billion to cover a broader range of claims. Johnson & Johnson also proposed a $6.475 billion reorganization in bankruptcy court to resolve 99% of remaining cancer claims.

Recent legal outcomes have varied. A $223 million judgment against the company was overturned in October 2023 by an appeals court, while a jury in Oregon awarded $260 million to a woman claiming the company’s baby powder caused her cancer. Additionally, a $45 million award was granted to the family of an Illinois woman who died from mesothelioma linked to asbestos in Johnson & Johnson powder.

Public and Legal Reactions

State officials have lauded the settlement as a victory for consumer protection. “This settlement marks a significant victory for consumer protection and public health,” said New Hampshire Attorney General John M. Formella. Maine Attorney General Aaron Frey also called the deceptive marketing practices particularly egregious given the product’s primary market was for babies.

The settlement aims to demonstrate the power of collective legal action and to hold corporations accountable for the safety of their products. “This is a testament to the power of collective action and the commitment of state attorneys general to safeguarding the interests of the public,” noted Formella, reinforcing the message of responsibility and accountability.

Moving Forward

The agreement stipulates that Johnson & Johnson will not manufacture, promote, or sell talc-based products in the United States anymore. However, the company is still engaged in multiple legal avenues to address ongoing claims and achieve comprehensive resolutions. As Johnson & Johnson aims to navigate these complex legal waters, the settlement serves as a critical juncture in the broader battle over product safety and corporate accountability.

The outcome of this settlement awaits judicial approval, and its implementation will be closely monitored by both legal experts and the public, reflecting the ongoing discourse on consumer safety and corporate ethics. The broader implications of this settlement will likely influence similar litigations and regulatory practices in the pharmaceutical and consumer goods industries.

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