On March 2, 2021, Johnson & Johnson asked the United States Supreme Court to review and grant relief from a $2 billion verdict, which originated in St. Louis, Missouri. This amount represents the largest verdict the company had leveled against it in relation to what is defined as asbestos-laden talc used in its baby powder.
The Supreme Court of Missouri decided not to hear an appeal by Johnson & Johnson over a June 23 $2.1 billion talcum powder verdict in a lower court. The case involved ovarian cancer, and its link to asbestos found in talcum powder made by J&J. Stockholders are concerned about the decision and its financial implications because of the number of pending cases against Johnson & Johnson.
In an uncharacteristic gesture, Johnson & Johnson is offering to pay $100 million to settle more than 1,000 lawsuits. The lawsuits center on the cancer-causing properties of asbestos said to be found in J&J talc powders. The move to settle a large number of lawsuits before trial is not only unprecedented for J&J but may signal a strategy to handle the more than 20,000 pending lawsuits facing the company.
Imerys SA, a leading supplier of talc to Johnson & Johnson, decided to sell off its talc mines in North America. This move was made to finance a settlement involving 14,000 individuals who developed cancer after using talc-based powders. It will also cover future cases. The sale will end six years of legal fighting over the company’s role since it supplied the talc said to contain asbestos to J&J. This development further advances the changes surrounding the sale and use of talc-based powders, including J&J’s decision to eliminate sales in the United States.
Johnson & Johnson announced its decision in May 2020 to stop selling its talc-based baby powder product in the United States and Canada. This was one of 100 products the company said it was discontinuing in light of the COVID-19 pandemic. J&J said that it was making this move to allow for greater social distancing in its distribution centers worldwide. However, some see it as an amazing concession after J&J has poured millions into defending talc-based baby powder in numerous lawsuits.
New Jersey U.S. District Court Judge Freda Wolfson made it clear in an April 2020 ruling against Johnson & Johnson that she would allow evidentiary testimony from the plaintiff’s experts on whether talc powder can cause cancer. With over 16,000 cases against J&J pending nationwide, this is a momentous decision. In short, without this testimony, many of the cases would have dropped along the wayside. The lawyers for Johnson & Johnson scoffed at the idea and said this decision is not a comment on the validity of the plaintiff’s cases. Instead, the company said that many cases where the plaintiff had won were overturned on appeal.
Four plaintiffs won a nine-figure award in a case against Johnson & Johnson when a New Jersey jury handed down a verdict of $750 million in punitive damages on February 6, 2020. Before this, the mesothelioma patients were awarded $37.2 million in compensatory damages, which covers such areas as lost wages and medical care now and in the future. The punitive damages used to punish a defendant for egregious harm were later reduced to $186.5 million. This was due to caps limiting the amount in the state. The lawsuit said that the plaintiffs developed mesothelioma due to the company’s talcum powder and Shower to Shower used on them as children by their parents. Johnson & Johnson plans to appeal.
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