Johnson \u0026 Johnson (NYSE: JNJ) rose 0.60% to $267.54 after the company announced a proposed $5.5 billion settlement covering about 76,000 ovarian cancer lawsuits. The agreement is intended to resolve nearly all remaining talc-related claims in U.S. state and federal courts and could end a legal dispute that has lasted for more than a decade.

Johnson \u0026 Johnson Seeks Broad Resolution for Talc Litigation

Johnson \u0026 Johnson said the estimated $5.5 billion settlement would address thousands of lawsuits involving talc-based products. The proposal covers about 76,000 ovarian cancer claims across federal and state courts and would resolve nearly all remaining active talc litigation against the company.

The settlement must receive approval from legal representatives handling at least 95% of the eligible ovarian cancer claims before it can become final. Johnson \u0026 Johnson expects to pay about $3 billion in 2027, with additional payments in 2028 depending on final participation levels.

The agreement does not cap the company’s total financial obligation. Instead, the final amount will depend on how many claimants join the settlement. Some lawyers involved in the negotiations have estimated that the total could exceed $7 billion if participation remains high.

Settlement Follows Years of Court Battles and Legal Strategy

Johnson \u0026 Johnson has maintained throughout the litigation that its talc products were safe and free from asbestos contamination. The company nonetheless opted to pursue settlement after years of courtroom disputes and several legal victories, aiming to resolve the existing ovarian cancer claims without further prolonged litigation.

Earlier this month, a federal judge questioned whether individual plaintiffs could directly prove that talc caused their ovarian cancer. That ruling strengthened Johnson \u0026 Johnson’s legal position before settlement discussions advanced. Previous trial outcomes had produced mixed results for both sides.

The company also tried multiple bankruptcy-related strategies through a subsidiary to resolve the litigation. Courts dismissed each bankruptcy filing, allowing lawsuits to resume in 2025. Both sides then returned to direct settlement negotiations rather than continuing bankruptcy proceedings. The scale of the dispute has made the legal process a recurring focus for investors, since it affects how much uncertainty remains around a long-running issue that has already altered the company’s consumer-product lineup.

Background Includes Product Changes and Remaining Legal Exposure

Johnson \u0026 Johnson stopped selling talc-based baby powder in the United States in 2020. The company later discontinued the product worldwide and replaced it with a cornstarch-based formula. The decision followed years of legal claims and growing public scrutiny.

Consumers filed lawsuits alleging that asbestos contamination in talc products caused ovarian cancer and other illnesses. Johnson \u0026 Johnson has consistently denied those allegations and has continued to cite studies supporting the safety of its products. The company previously settled most lawsuits involving mesothelioma claims separately from ovarian cancer cases.

The proposed settlement applies only to existing ovarian cancer lawsuits and does not cover future claims. As a result, additional lawsuits could still be filed after the agreement takes effect. Even so, the proposal represents Johnson \u0026 Johnson’s largest effort yet to bring one of its longest-running legal disputes to a close, while leaving the company with the need to complete the approval process and determine how much participation it can secure before the deal becomes final.