J&J Weighs Third Bankruptcy to Resolve Baby Powder Lawsuits

Johnson & Johnson said it is weighing a third attempt to use bankruptcy for an $8.9 billion settlement of tens of thousands of lawsuits that allege tainted talc in the company’s baby powder caused cancer.

Erik Haas, J&J’s lawyer in charge of litigation, said during the company’s earnings call Tuesday that the world’s largest maker of health-care products is working with law firms representing “the vast majority” of talc victims to settle all current and future cases that could potentially cost J&J billions of dollars in damages if they go to jury trials.

“We’re pursuing a consensual resolution of the talc claims through another bankruptcy,” Haas said. He added that J&J also will continue to “vigorously defend itself” in talc cases that come to trial while it explores the bankruptcy option once again.

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