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Judge Rejects J&J's $10 Billion Talc Settlement Proposal

The ruling marks the third failed bankruptcy strategy by Johnson & Johnson, which now plans to address claims through the civil court system.

FILE - The Johnson & Johnson headquarters is in New Brunswick, New Jersey, on Thursday, Feb. 8, 2024. (AP Photo/Ted Shaffrey, File)
A Johnson & Johnson banner is displayed on the front of the New York Stock Exchange (NYSE) in New York City, in New York City, U.S., December 5, 2023. REUTERS/Brendan McDermid
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Overview

  • A U.S. bankruptcy judge denied Johnson & Johnson's $10 billion settlement proposal, citing a faulty voter solicitation process for personal injury claimants.
  • This is the third time J&J's bankruptcy strategy to resolve talc-related lawsuits has been rejected by the courts.
  • The company announced it will not appeal the ruling and will instead litigate the lawsuits individually in the civil court system.
  • The lawsuits allege that J&J's talc products caused ovarian cancer and mesothelioma, though the company maintains its products are safe and asbestos-free.
  • J&J shares fell over 3% following the court decision, reflecting ongoing legal and financial challenges for the company.