Judge Rejects J&J's $10 Billion Settlement Proposal in Talc Lawsuits

A U.S. bankruptcy judge has denied Johnson & Johnson's $10 billion plan to settle lawsuits related to its talc products alleged to cause ovarian cancer. This marks the third failed attempt for J&J to resolve the lawsuits through bankruptcy, with opponents arguing against the company's financial distress claims.

A U.S. bankruptcy judge has turned down Johnson & Johnson's $10 billion settlement offer to resolve lawsuits claiming its talc products lead to ovarian cancer. This decision, announced earlier this week, is the third time the company's attempts to address these claims via bankruptcy have been thwarted in court.

J&J sought to manage the litigation through a subsidiary's bankruptcy filing, after being unsuccessful in two previous instances. However, U.S. Bankruptcy Judge Christopher Lopez deemed that the company did not qualify for bankruptcy procedures. Lopez expressed his hopes for a resolution to benefit all parties involved, including J&J, Red River, and the claimants.

Despite J&J's argument that their recent proposition contained increased financial incentives and garnered the majority support from voting cancer victims, opposition parties, including some victim attorneys and a government watchdog, insisted that the case lacks merit without financial distress. These lawsuits implicate over 60,000 claimants, who allege asbestos in J&J's talc products caused their cancer, claims the company denies.

(With inputs from agencies.)