AFTER A DECADE OF TALC LITIGATION, A $ 5.5 BILLION PATH TO RESOLUTION
Johnson & Johnson’ s proposed global settlement could resolve approximately 76,000 ovarian cancer claims— and close one of the longest-running chapters in modern mass tort litigation.
BY SARA G. STEPHENS, EXECUTIVE EDITOR
After more than a decade of trials, appeals, tens of thousands of claims, and three failed attempts to resolve the litigation through bankruptcy, Johnson & Johnson has agreed to an estimated uncapped minimum $ 5.5 billion settlement of lawsuits alleging its talc products caused epithelial ovarian cancer.
Announced July 27, the agreement encompasses approximately 76,000 existing cancer claims pending in federal and state courts and could resolve nearly all of the company’ s remaining talc litigation. The settlement is conditioned on participation by enough claimants to account for 95 percent of those claims.
The $ 5.5 billion figure is uncapped and is not the ceiling. It is the minimum that J & J will pay to resolve qualified cases. The agreement assigns minimal values to qualifying claims but does not impose an overall cap on Johnson & Johnson’ s liability under the settlement. Reuters reported that one plaintiffs’ attorney involved in the negotiations estimated the ultimate payout could reach $ 7 billion or more, depending on participation.
For the plaintiffs who have spent years waiting for resolution, the structure is as important as the headline number.
Levin Papantonio, whose attorneys have played a leadership role in the litigation, said compensation will be determined through a tiered grid using objective claim criteria. Because the settlement is uncapped, qualifying plaintiffs are not competing for shares of a fixed fund. The firm characterized the agreement as providing at least $ 5.5 billion to resolve current claims in MDL No. 2738 and related state-court proceedings.
80 The Trial Lawyer