Explainer-Can J&J finally put the talc litigation behind it?

By Dietrich Knauth

NEW YORK, July 29 (Reuters) - After years of failed attempts to resoluteness thousands of lawsuits alleging that its talc products caused cancer, Johnson & Johnson says it has reached a settlement, worthy astatine slightest $5.5 billion, that could yet assistance bring ‌an extremity to litigation that has dogged the institution for implicit a decade.

WHAT IS THE TALC LITIGATION ABOUT?

Tens of thousands of radical ‌have sued J&J successful national and authorities courts, alleging that its talc-based babe pulverization and different products caused ovarian cancer.

J&J has agelong denied the allegations, arguing that decades of technological ​testing amusement its talc products are harmless and bash not origin cancer.

Results astatine proceedings person been mixed: J&J won respective cases, but the litigation has besides produced billions of dollars successful verdicts, settlements and ineligible costs implicit much than a decade.

WHAT MUST HAPPEN FOR THE SETTLEMENT TO TAKE EFFECT?

J&J says the colony volition determination guardant lone if the woody is accepted by capable radical to screen 95% of the estimated 76,000 ovarian crab claims. That could hap successful ‌a fewer months, according to a plaintiffs' lawyer ⁠who supports the deal.

HOW HAS J&J TRIED TO RESOLVE THE LITIGATION IN THE PAST?

J&J antecedently tried 3 times to extremity the talc litigation done bankruptcy. In each case, it created a caller subsidiary, transferred talc liabilities to that institution ⁠and past placed it into bankruptcy proceedings. Each bankruptcy was tossed retired of court.

The bankruptcies were fiercely opposed by immoderate plaintiffs' lawyers, who argued that a financially steadfast institution specified arsenic J&J should not beryllium capable to usage bankruptcy protections meant for businesses successful fiscal distress.

A bankruptcy settlement, if it had been approved, would person ​bound ​people who did not hold to its presumption and claims from radical who make ​cancer successful the future.

HOW IS THIS SETTLEMENT DIFFERENT FROM ‌THE PAST ATTEMPTS?

The caller colony does not effort to hindrance unwilling participants oregon radical who make crab successful the future. It is simply a voluntary process that does not trust connected a bankruptcy court's approval.

It volition wage claims overmuch faster than the bankruptcy would have. Plaintiffs' lawyers said the caller woody volition wage claims successful afloat successful little than 2 years, whereas the bankruptcy colony would person paid retired claims implicit 25 years.

IS THE SETTLEMENT LIKELY TO SUCCEED?

J&J and starring plaintiffs' instrumentality firms - including firms that correspond ample numbers of plaintiffs with ovarian crab claims and those that negotiated the woody - ‌have expressed assurance that this woody volition get crossed the decorativeness line.