Johnson & Johnson proposed a settlement plan to settle all the thousands of lawsuits it faces in the U.S. These legal actions accuse the American pharmaceutical giant of selling talc-based products that could cause ovarian cancer.
Some lawsuits even claimed that various people already got ovarian cancer after using J&J's products. Now, is Johnson & Johnson's settlement proposal enough?
Johnson & Johnson Offers $6.5 Billion To Settle Lawsuits
According to NBC News' latest report, Johnson & Johnson proposed a $6.5 billion settlement for all the lawsuits accusing its products of causing ovarian cancer.
The multinational medical firm plans to pay $6.5 billion over 25 years. The lawsuits that J&J wants to settle have been causing public relations and financial trouble for the past decades.
If the settlement proposal is approved, Johnson & Johnson can solve the financial issues and other problems caused by thousands of lawsuits against it in the U.S.
Will Johnson & Johnson's Settlement Proposal Be Approved?
As of press time, Johnson & Johnson's billion-dollar settlement proposal still needs the approval of claimants. The Guardian reported that around 75% of the claimants should say yes to the proposal before it can be accepted.
Once it is approved, J&J will be able to resolve the lawsuits via a third bankruptcy filing of its subsidiary company, LTL Management. This would greatly benefit the American pharmaceutical giant since the settlement could prevent future lawsuits alleging the company's now-discontinued talc-based products causing ovarian cancer.
The settlement will also prevent people from leaving the deal to pursue other kinds of lawsuits against Johnson & Johnson.
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