J&J has enough support from claimants for $6.5 billion talc settlement – Bloomberg

By Dietrich Knauth

NEW YORK (Reuters) -Johnson & Johnson has cleared a key threshold of support for its proposed $6.5 billion settlement of tens of thousands of lawsuits alleging its baby powder and other talc products caused cancer, according to a Bloomberg report.

More than 75% of claimants voted in favor of the proposal, according to Bloomberg, a hurdle the company set for a third attempt at placing a subsidiary in bankruptcy protection to resolve the litigation.

J&J (NYSE:) spokesperson Clare Boyle said the company could not comment while the vote tally was not final.

Johnson & Johson had set that vote percentage, matching a provision in U.S. bankruptcy law, as the benchmark to proceed with another bankruptcy bid, which now is expected in the near future. The deadline for casting the votes was July 26.

J&J faces lawsuits from about 61,000 claimants who alleged that its baby powder and other talc products were contaminated with asbestos and caused ovarian and other cancers. J&J denies the allegations and has said that its products are safe.

It is advancing a settlement proposal that would permanently end the litigation.

J&J’s subsidiary, now called LLT Management, was created in 2021 under a different name to try to shield the healthcare conglomerate from talc lawsuits. Two previous bankruptcy attempts were blocked by courts.