Johnson and Johnson is set to make one of the biggest payouts in history over claims its talc powder causes ovarian cancer.
Under the proposed deal, the pharma giant would pay nearly $6.5billion in total to tens of thousands of people who have filed lawsuits against the company.
J&J says the offer has ‘significant support’ among those seeking payments and that they expect it to be approved.
It has already paid out billions over its talc powder — which has now been discontinued — including $700million to states over misleading advertising and more than $2.12billion to 22 women who blamed their ovarian cancer on the powder.
J&J, based in New Jersey, has admitted no wrongdoing and continues to insist that its talcum powder is safe, did not contain asbestos and did not cause cancer.
J&J is set to pay nearly $6.5billion to settle the more than 54,000 lawsuits it faces over claims its talc powder has triggered ovarian cancer
Lora Stahl, 56, from Nebraska, pictured here with her husband Herb and grandson, is one of the more than 54,000 people saying J&J’s baby powder gave them cancer. She previously suffered from ovarian cancer
The deal would see a subsidiary of J&J, called LTL Management, file for bankruptcy in order to settle all current and future claims.
A bankruptcy is a legal device used by businesses or individuals to declare they cannot repay their debts and allows for a settlement to be reached with those to whom they owe money.
The 54,000 people suing J&J will now have three months to vote on the deal, with 75 percent needing to vote in favor for it to work.
This is the third time J&J has offered a bankruptcy deal, although the two previous ones were thrown out by judges — although these didn’t involve votes from those suing the company.
If passed, it will be one of the largest in history — almost equivalent to the $6billion to be paid by the Sackler family over the opioid crisis and well above the $3billion paid by GSK in 2012 to resolve allegations it failed to report safety data.
Many of the claims are being brought by women who say they developed ovarian cancer because of the powder, or people who were diagnosed with mesothelioma, a cancer around the heart that can be caused by inhaling toxic asbestos.
Among them is 56-year-old Lora Stahl from Nebraska, who claims she had to have a hysterectomy and was robbed of the chance to grow her family after the baby powder caused a cancerous tumor to form in her ovaries.
She was diagnosed with stage two ovarian cancer at the age of 35, with doctors having to remove her uterus, cervix and ovaries to halt the disease’s spread.
Speaking to DailyMail.com, she said: ‘I was still in my childbearing years, my husband and I were still young. I was lying there, and it just hit me, “Oh, my gosh, I can’t have kids anymore. We’re done having a family, we don’t have a choice. It’s not my choice anymore.”’
Another claimant is 24-year-old Emory Valadez from California, who said the firm’s baby powder caused him to develop a rare and deadly cancer.
Talc powder was popular for decades in the US for its ability to keep skin dry and to help avoid rashes, being used on both adults and babies.
But the powder, made from a naturally occurring mineral, can also contain small amounts of asbestos according to some studies — a carcinogen known to cause cancers when repeatedly inhaled.
Once asbestos fibers enter the body, they can lodge in soft tissue permanently, causing severe cellular damage and inflammation — which may lead to cancer.
In March this year, J&J received a new chance to contest the scientific evidence linking talc to ovarian cancer in the centralized litigation in New Jersey federal court.
The judge overseeing the cases said that recent changes in the law and new scientific evidence require a fresh review, and he asked J&J to present new arguments on the science by late July.
J&J said it will continue to defend itself against the lawsuits while trying to gather votes on the settlement.
The company said it has prevailed in 95 percent of ovarian cases tried to date, including every ovarian case tried over the last six years.
