Johnson & Johnson proposes paying nearly $9 billion to settle talcum powder lawsuits

New Brunswick, NJ: Johnson & Johnson is earmarking nearly $9 billion to cover allegations that its baby powder containing talc caused cancer, more than quadrupling the amount that the company had previously set aside to pay for its potential liability.Under a proposal announced Tuesday, a J&J subsidiary will re-file for Chapter 11 bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in US history.The $8.9 billion that J&J would transfer to the subsidiary, LTL Management, would be payable over the next 25 years. The amount is up from the $2 billion that the New Brunswick, New Jersey, company set aside in October 2021.The revised amount is being backed by more than 60,000 parties that have filed lawsuits alleging harm from J&J talcum powder, according to the company.J&J isn't admitting any wrongdoing as part of the proposed settlement, a point that a company executive emphasized in a Tuesday statement that maintained the claims "are specious and lack scientific merit."But fighting the lawsuits in court would take decades and be expensive, said Erik Haas, J&J's worldwide vice president of litigation.The lawsuits filed against J&J had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.The claims contributed to a drop in J&J's sales of baby powder, prompting the company to stop selling its talc-based products in 2020. Last year, J&J announced plans to cease sales of the product worldwide.J&J's stock rose 3 per cent in after-hours trading Tuesday after the company's announcement.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.