Johnson & Johnson Offers $5.5 Billion Talc Lawsuit Settlement

Johnson & Johnson has proposed a settlement of up to $5.5 billion to resolve approximately 76,000 lawsuits alleging that its talc-based baby powder caused ovarian cancer. The New Jersey-based healthcare company denies the allegations are valid, stating they are "meritless," but agreed to settle to resolve the long-running legal dispute.

Under the proposal, J&J would pay up to $3 billion beginning next year, with no additional payments required before 2028. The settlement requires approval from legal representatives of 95 percent of ovarian cancer claimants in state and federal courts before finalization. The company has reformulated its baby powder and faces significant accumulated litigation costs from the dispute.