Report says Johnson and Johnson will pay $700 million over their talcum baby powder

Johnson & Johnson is set to pay around $700 million to settle an investigation by more than 40 states into its marketing of talcum powder, according to sources listed by Bloomberg.

The agreement aims to resolve allegations that the pharmaceutical company failed to warn consumers about cancer risks associated with its talcum-based baby powder. Although the settlement amount has been agreed upon, other terms are yet to be finalized.

The deal is expected to shield Johnson & Johnson from future lawsuits related to its talcum based baby powder and alleged cancer risks. The company faces around 50,000 lawsuits over the product.

The settlement follows an investigation by 42 states and the District of Columbia, as well as individual lawsuits by states like Mississippi and New Mexico, alleging improper marketing and failure to warn consumers about health risks.

Johnson & Johnson has consistently denied the claims and had set aside $8.9 billion in a bankruptcy filing to resolve approximately 40,000 cases, a plan later rejected by a New Jersey judge.

In 2018, a Missouri court ordered the company to pay nearly $4.7 billion to 22 women, claiming that asbestos in its talcum powder was linked to ovarian cancer.

Johnson & Johnson appealed the ruling, but the Supreme Court rejected the effort.