UNITED STATES/CANADA: On Thursday, Johnson & Johnson (J&J) announced that it had decided to “retain” any talc-related liabilities arising from legal proceedings in the US and Canada and that it would “indemnify” newly founded consumer health subsidiary Kenvue for all costs.
The media outlets reported that Kenvue had been linked to allegations that their talcum powder can cause cancer. The company issued a statement based on regulatory documents, persons with knowledge of the situation, and seven talc lawsuits launched since April. Kenvue has been mentioned in each of those cases.
Johnson & Johnson has agreed to hold Kenvue blameless and indemnify it from legal proceedings in the US and Canada. They have also agreed to retain all talc-related liabilities, according to Erik Haas, vice president of litigation at Johnson & Johnson.
Johnson & Johnson’s announcement coincides with its intention to value Kenvue at up to $42.95 billion in its initial public offering. J&J agreed to pay $8.9 billion earlier this month to settle tens of thousands of cases claiming that the talc in its Baby Powder and other products caused cancer. J&J claims their talc products are risk-free and do not lead to cancer.
Justin and Kathryn Bergeron, a husband and woman from Louisiana, filed a lawsuit against Kenvue, alleging that they used J&J talc and developed mesothelioma, an illness linked to asbestos exposure. It may be the first of many claims made against Kenvue and other J&J companies, according to attorneys representing talc claimants.
Earlier, J&J praised Judge Michael Kaplan’s ruling as a “win for claimants” as it moves them closer to having a say in the settlement’s proposed terms. More than 60,000 claimants have declared their intention to vote in favour of the scheme, and Erik Haas, global vice president of litigation for J&J, believes they will approve the plan when given a thorough explanation.
Kaplan also concluded that J&J could use the bankruptcy procedure to settle talc charges, but this decision was overruled by the US Court of Appeals for the 3rd Circuit in January, ruling that neither LTL nor J&J had a justifiable need for bankruptcy protection. The “Texas two-step” enables businesses to separate valued assets from liabilities through a contentious merger.
J&J has denied claims that its talc products contributed to cancer despite legal disputes. Joseph Wolk expressed regret that the company must “put money towards baseless scientific claims”. Talc products are blamed for thousands of cases of ovarian cancer and deaths.
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