Johnson & Johnson to Pay $5.5 Billion to Settle Talc Cancer Lawsuits in US
Johnson & Johnson announced on Monday that it will pay approximately $5.5 billion to settle tens of thousands of lawsuits alleging that its talcum powder products caused ovarian cancer. The settlement aims to resolve nearly all remaining federal and state court claims in the United States, covering around 76,000 cases. The company plans to make an initial payment of $3 billion in 2027, with additional payments in 2028. Legal representatives indicated the total payout could exceed $7 billion depending on participation, requiring approval from 95% of the plaintiffs.
Eric Haase, Johnson & Johnson's Vice President for Litigation, stated that the company still considers the claims baseless but views the settlement as a way to move forward and focus on life-saving medical innovations. The controversy stems from concerns that talc, a natural mineral often mined near asbestos deposits, might be contaminated with cancer-causing fibers.
Johnson & Johnson has already paid billions in previous verdicts, including a record $966 million award in California in 2025 and over $2 billion in Missouri. However, a recent federal ruling questioned plaintiffs' ability to prove a direct link between talc and cancer, likely accelerating the settlement talks.
Despite the legal challenges, Johnson & Johnson's stock has performed well, supported by a strong pharmaceutical pipeline and a AAA credit rating. The company ceased selling talc-based powder in the US and Canada in 2020 but continued sales in other countries, including Israel, until switching globally to cornstarch-based powder in 2023. Israeli consumers are not included in the US settlement, and local lawsuits have been filed since 2018. Following the spin-off of its consumer health division into Kenvue, responsibility for talc products sold outside North America now lies with Kenvue and local importers, meaning Israeli claims will proceed separately from the US settlement.
