February 22, 2024

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Johnson & Johnson is developing a talcum powder probe for babies

Johnson & Johnson is developing a talcum powder probe for babies

For decades, these cases have caused financial and public relations problems for Johnson & Johnson, which maintains that its now-discontinued talc-based products and baby talcum powder are unsuitable for use. security For consumers.

Johnson & Johnson said in October Deposit of securities 42 states and Washington, D.C., have launched a joint investigation into their marketing of talc-based products. Its chief financial officer, Joseph Wolk, said the company would pay $700 million to settle the investigation He told the Wall Street Journal Tuesday.

Last year, Johnson & Johnson set aside about $400 million alone to settle consumer protection claims in the United States.

Eric Haas, vice president of litigation at Johnson & Johnson, confirmed the settlement in a statement to CNBC. He did not provide the payment amount or further details about the deal.

“In line with the plan we outlined last year, the company continues to follow several paths to reach a comprehensive and final solution to the talc issue,” Haas told CNBC. “As leaked last week, this progress includes an agreement in principle that the company has reached with a consortium of 43 state attorneys general to resolve their talc claims.”

Bloomberg first reported announced the settlement earlier this month, citing sources familiar with the matter.

Johnson & Johnson, which reported fourth-quarter results on Tuesday, twice tried to resolve its consumer talc issues by unloading those liabilities into a subsidiary, LTL Management, and having that unit file for Chapter 11 bankruptcy protection.

A New Jersey bankruptcy judge in July rejected the second bankruptcy attempt, stating that LTL's management was not financially strapped enough. In April, a US appeals court rejected the first bankruptcy attempt for the same reason.

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As part of its latest failed bankruptcy attempt, Johnson & Johnson proposed paying $8.9 billion to claimants for its talc products.

Johnson & Johnson also said late last year that it was considering a third bankruptcy attempt as it tries to move forward with that proposal.

Johnson & Johnson ended global sales of talc-based baby powder last year.

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