Johnson & Johnson to pay $5.5 billion in talc settlement

Johnson & Johnson (JNJ.N) agreed to pay an estimated $5.5 billion to resolve about 76,000 lawsuits alleging its baby powder and other talc products cause ovarian cancer.

The settlement covers nearly all remaining talc claims, including those in federal court in New Jersey and related state court cases.

The deal requires acceptance by 95% of ovarian cancer claimants in state or federal court before it becomes final.

J&J expects to pay $3 billion in 2027 and further payments in 2028; total could reach $7 billion or more depending on participation.

The settlement applies only to existing claims and does not address future lawsuits, making more money available to current plaintiffs than prior bankruptcy proposals.