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J&J Settles $6B Baby Powder Suit for $75M

J&J Settles $6B Baby Powder Suit for $75M

J&J Settles $6B Baby Powder Suit for $75M

Introduction

Johnson & Johnson has agreed to a $75 million settlement with Mississippi to resolve a consumer protection lawsuit related to its talc-based baby powder.

The settlement, confirmed by sources familiar with the matter, comes ahead of a non-jury trial scheduled next month in Jackson, Mississippi. Mississippi had sought up to $6 billion in damages over Johnson & Johnson's alleged failure to warn consumers about potential cancer risks associated with the powder over nearly five decades.

The settlement follows a lengthy legal battle and adds to Johnson & Johnson's efforts to address mounting litigation surrounding its talc-based products. The company has faced numerous lawsuits from consumers claiming it concealed the risks of its baby powder, leading to concerns among investors and affecting its stock price.

In response to the settlement, Johnson & Johnson's worldwide vice president of litigation stated that the company is committed to achieving a comprehensive resolution of the talc litigation. However, the settlement with Mississippi was not part of the $700 million agreement reached in January with 42 US states investigating similar claims.

Mississippi's lawsuit sought not only financial penalties but also requested a court order for Johnson & Johnson to include warnings on baby powder sold in the state. Despite Johnson & Johnson's stance that its products are safe and appropriately marketed, the company has faced significant legal challenges and public scrutiny over the issue.

Johnson & Johnson's talc litigation includes tens of thousands of cases from former users alleging links between the powder and cancer. While the company has settled some cases, others are ongoing, with numerous suits consolidated before a federal judge in New Jersey.

The legal proceedings have highlighted disagreements over the evidence concerning the alleged cancer risks of Johnson & Johnson's talc-based products. Despite the company's assertions and previous legal battles, the resolution of these cases remains a complex and ongoing challenge for Johnson & Johnson.

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