J&J says talc plan commits company to pay claimants $6.475B

Johnson & Johnson announced a proposed plan of reorganization by its subsidiary, LLT Management LLC, for the comprehensive and final resolution of all current and future claims related to ovarian cancer arising from cosmetic talc litigation against it and its affiliates in the United States. J&J says the plan commits the company to pay ovarian claimants a present value of approximately $6.475B to be paid over 25 years, “which is a far better recovery than the claimants stand to recover at trial.” J&J added: “Most ovarian claimants have not recovered and will not recover anything at trial. Indeed, the company has prevailed in approximately 95% of ovarian cases tried to date, including every ovarian case tried over the last six years. In addition, based upon the historical run rate, it would take decades to litigate the remaining cases, and therefore, most claimants will never have “their day in court.” Further, on March 27, 2024, the Judge presiding over the multi-district litigation – MDL – where 93% of the ovarian claims are filed – agreed to reconsider the scientific validity of the opinions offered by plaintiffs’ experts in a Daubert hearing, pursuant to the rigorous review required by the new Federal Rules of Evidence 702. If the opinions fail that review, which the company expects they will, the ovarian claims should be dismissed. In light of those risks, counsel representing the overwhelming majority of current ovarian claimants assisted in the development and support the plan.”