Johnson and Johnson Baby Powder Case: Johnson & Johnson (J&J) will end the lawsuits related to its talc powder on cancer allegations. The company has agreed to a compensation of $6.5 billion to settle the cases. J&J has been saying its products are safe.
Washington: The world’s renowned company Johnson & Johnson (J&J) has agreed to end the years-long legal dispute regarding its baby powder and other talc-based products. Thousands of women had accused the company of causing ovarian cancer by using its products. Now the company has agreed to pay a compensation of $ 6.5 billion (about Rs 52,676 crore) to settle these cases.
It is one of the longest and costliest legal battles in corporate history. Nearly 76,000 cases were filed against J&J in the US. The settlement offer now made by the company will be implemented only if at least 95% of the complainants accept it.
What are the allegations and what does the company say?
The complainants said that the talc present in J&J’s baby powder was mixed with asbestos, which causes cancer. At the same time, Johnson & Johnson has been continuously denying these allegations. The company says that its products are completely safe and do not cause cancer. The company has made it clear that it is not entering into this agreement because there is any defect in its products, but to end this legal battle and uncertainty that has been going on for years, in which billions of dollars have been spent so far.
How will compensation be given?
According to the agreement, the company will give $3 billion in 2027 and the remaining amount in 2028. According to the information, if more people join this agreement then the total amount of compensation can increase up to 7 billion dollars. Earlier, the company had tried to declare itself bankrupt to avoid the case, but the court had rejected its argument. Following these serious allegations, the company stopped selling talc-based baby powder in the US in 2020. Now Johnson & Johnson sells powder made from cornstarch in the US.