Johnson & Johnson to settle talc child powder probe

Johnson & Johnson has reached a tentative settlement to resolve an investigation by greater than 40 states into whether or not the corporate misled sufferers concerning the security of its talc baby powder and different talc-based merchandise, the corporate mentioned in an announcement to CNBC on Tuesday. 

Notably, the settlement doesn’t resolve the tens of thousands of consumer lawsuits, a few of that are slated to go to trial this 12 months, alleging that these talc-based merchandise precipitated most cancers. These circumstances have for many years precipitated monetary and public relations bother for J&J, which contends that its now-discontinued talc merchandise are protected for customers.

J&J mentioned in an October securities submitting that 42 states and Washington, D.C., had launched a joint investigation into its advertising and marketing of talc-based merchandise. The corporate can pay $700 million to settle it, its CFO Joseph Wolk told the Wall Street Journal Tuesday.

Final 12 months, J&J put aside about $400 million to resolve U.S. state shopper safety claims.

Erik Haas, J&J’s worldwide vice chairman of litigation, confirmed the settlement in an announcement to CNBC. He didn’t present the cost quantity or additional particulars on the deal.

“Consistent with the plan we outlined last year, the company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation,” Haas informed CNBC. “As was leaked last week, that progress includes an agreement in principle that the Company reached with a consortium of 43 State Attorneys Generals to resolve their talc claims.”

Bloomberg first reported concerning the settlement earlier this month, citing sources aware of the matter.