Johnson & Johnson Proposes Settlement with Talc Supplier
Johnson & Johnson is proposing a settlement with mining companies Cyprus Mines Corporation and Imerys Talc America. If approved, Johnson & Johnson would pay $225 million and then an additional $280 million before the end of 2025. Imerys Talc America was once a subsidiary of Cyprus Mines and was J&J’s sole talc provider for its baby powder. Both Cyprus Mines and Imerys Talc America have been named as co-defendants alongside J&J in a number of talc lawsuits. The result is that Imerys and Cyprus Mines Corporation both filed for bankruptcy, Imerys in 2019 and Cyprus Mines in 2021. In February 2024 Imerys and Cyprus Mines announced the creation of an $862 million trust fund to settle personal injury claims alleging that asbestos-contaminated talc caused plaintiffs’ cancer. A portion of J&J’s proposed $505 million settlement with the companies would go toward a trust for talc claimants. The legal disputes are centered around indemnification agreements Imerys and Cyprus say should have made them exempt from cancer liability. Johnson & Johnson denies that the indemnity agreements existed and disputes the terms.
In May 2024, the Johnson & Johnson created subsidiary LTL Management offered to pay $6.475 billion to settle all current and future ovarian cancer lawsuits nationwide. J&J is facing thousands of lawsuits claiming its talc-based products cause ovarian cancer. Court documents show that Johnson & Johnson knew about asbestos contamination in its talc-based products since at least the 1950s. J&J only stopped selling talc-based products in 2023. The proposed settlement from LTL management would only cover ovarian cases. Any remaining mesothelioma claims would not be covered. J&J claims that it has already settled 95 percent of mesothelioma cases. For the deal to be approved, at least 75 percent of claimants need to agree to the deal. A final vote for the proposal occurred around July 26, 2024. An agreement would mean that money would be paid over the course of 25 years.
The multi-billion dollar settlement proposal is likely part of J&J’s plans for a third attempt at bankruptcy protection. The company’s two previous attempts at bankruptcy protection failed when a judge denied the claims that the company was in financial distress, making it unqualified for bankruptcy protection. Talc and asbestos are both naturally occurring minerals that form close to each other in the earth. Talc is easily contaminated with asbestos when it is mined from the earth. Asbestos causes multiple cancers including mesothelioma and lung cancer.
Were you diagnosed with mesothelioma or lung cancer after exposure to asbestos? Contact us today to see if you could be entitled to compensation. Call 412-471-3980 or fill out our contact form and a member of our team will get back to you as soon as possible.
