On May 1st, reports surfaced that Johnson & Johnson officially announced a restructuring plan for its subsidiary LLT Management LLC on May 1st. This significant move aims to comprehensively address all current and future claims of ovarian cancer related to talcum powder lawsuits against the company and its U.S. affiliates.
The plan commits Johnson & Johnson to pay approximately $6.475 billion in compensation to the claimants over the next 25 years (present value calculation).
Looking back, as early as 2018, Johnson & Johnson faced lawsuits from users who developed mesothelioma. These users believed their illnesses were caused by asbestos in the talcum powder found in baby powder.
These allegations sparked widespread discussions on the safety of the company's products and its accountability.
To date, Johnson & Johnson has faced over 16,000 similar lawsuits. Consumers in these lawsuits claim that the company's products contained asbestos, a known carcinogen, and that the company failed to timely warn consumers.
These accusations have significantly impacted Johnson & Johnson's reputation and market position.
Notably, in 2016, a jury in St. Louis, USA, ruled that Johnson & Johnson should compensate an ovarian cancer patient $55 million.
The plaintiff had to undergo a hysterectomy due to ovarian cancer, drawing significant public attention to her plight.
This verdict not only highlighted the legal risks Johnson & Johnson faces in handling such lawsuits but also heightened public concerns about the safety of the company's products.
Therefore, Johnson & Johnson's proposed restructuring plan is not only a proactive response to the company's legal responsibilities but also a crucial step towards rebuilding consumer trust and restoring market position.
