Johnson & Johnson (J&J) has tentatively agreed to a $700m settlement with more than 40 US states over their investigations into the marketing of its talcum powder-based products.
The latest deal, which would be part of a far bigger settlement, includes 42 states and Washington DC and would resolve their probes into whether the company misled consumers about the health risks posed by the products.
Among the states that did not sign on to the agreement are Mississippi and New Mexico, which filed separate suits in 2014 and 2020 and are seeking larger settlements.
The new agreement does not extend to private plaintiffs’ cases against the company, with some of these expected to go to trial later this year.
J&J has been continually trying to resolve tens of thousands of lawsuits from people who claim the products cause cancer.
It previously created a subsidiary to manage the claims before filing a bankruptcy petition – a move sometimes referred to as a ‘Texas Two-Step’.
A bankruptcy judge had initially ruled in favour of the move back in February 2022, but the strategy faltered last year when LTL Management’s petition was rejected on the grounds that neither it nor J&J had a legitimate need for bankruptcy protection because they were not in ‘financial distress’.
In a second failed bankruptcy attempt, J&J proposed an $8.9bn settlement to resolve the lawsuits.
The company, which has maintained that its now-discontinued talc products are safe, has since offered $6.9bn to settle ovarian cancer claims, according to the Lawsuit Informational Center.
Commenting on the latest move, Erik Haas, J&J’s worldwide vice president of litigation, said in a statement: “Consistent with the plan we outlined last year, the company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation.
“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.”