The company announced Tuesday that its subsidiary LTL Management has re-filed for Chapter 11 bankruptcy protection to seek approval of the plan that would result in one of the biggest product-liability settlements in the U.S.
The proposed $8.9 billion settlement would be payable over the next 25 years “to resolve all the current and future talc claims,” Johnson & Johnson said.
The company previously committed $2 billion to resolve the claims in connection with LTL Management’s initial bankruptcy filing in 2021.
Johnson & Johnson said more than 60,000 parties that filed lawsuits back the deal.
The New Jersey-based company denies claims that its talcum powder products are unsafe and isn’t admitting any wrongdoing as part of the proposed settlement.
Fighting the cases, however, would take decades and be costly, “with most claimants never receiving any compensation,” said Erik Haas, worldwide vice president of litigation at Johnson & Johnson.
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