Johnson & Johnson's $6.5 Billion Settlement for Talc Lawsuits Gains Critical Support

Johnson & Johnson has cleared a crucial support threshold for its proposed $6.5-billion settlement to resolve tens of thousands of lawsuits alleging that its talc products caused cancer. Over 75% of claimants have voted in favor, though the final vote tally is still being counted. Meanwhile, legal challenges persist.

Johnson & Johnson has reached a significant milestone in its $6.5-billion settlement plan for tens of thousands of lawsuits claiming that its talc products caused cancer. According to Bloomberg, more than 75% of claimants have approved the proposal, surpassing a crucial threshold for moving forward with their third bankruptcy attempt.

Reuters has not independently confirmed Bloomberg's report, and sources informed Reuters that the votes are still being tallied. J&J spokesperson Clare Boyle stated that the company could not comment on the vote tally as it is not final, though J&J remains optimistic about ultimately securing sufficient support for the settlement.

Facing lawsuits from approximately 61,000 claimants, J&J has set a 75% approval benchmark, in line with U.S. bankruptcy law, to initiate another bankruptcy bid. This strategy, known as the "Texas two-step," aims to resolve all claims in one comprehensive settlement through a newly created subsidiary declaring Chapter 11, without J&J itself filing bankruptcy.

(With inputs from agencies.)