J&J Faces Setback as Court Advances Over 67,000 Talc Lawsuits
A court-appointed official's recommendation to allow expert testimony linking talc to cancer deals a blow to a legal strategy centered on multi-billion dollar settlements.
Johnson & Johnson shares saw a slight decline Wednesday after a court-appointed official dealt a significant blow to the company's attempts to contain a massive wave of litigation related to its talc-based powders. The healthcare giant, with a market capitalization of over $525 billion, now faces the prospect of tens of thousands of cases moving towards trial.
The setback came from a 658-page recommendation by a special master in the federal court in New Jersey, where over 67,500 lawsuits are consolidated. The official, retired U.S. District Judge Freda Wolfson, concluded that scientific experts for the plaintiffs should be allowed to testify that a link exists between J&J's talc products and ovarian cancer. This decision, which the company has pledged to appeal, effectively validates the core scientific argument underpinning the plaintiffs' cases and clears a critical hurdle for them to proceed.
This ruling strikes at the heart of J&J's long-running legal strategy to manage its talc liabilities. The company has made three unsuccessful attempts to resolve the claims through the bankruptcy of a specially created subsidiary, LTL Management. The most recent proposal involved a settlement worth nearly $9 billion, but the bid was rejected by a federal judge in April 2025. With the bankruptcy strategy all but exhausted, this latest court recommendation reopens the door to protracted and potentially costly individual trials.
While the multidistrict litigation in New Jersey has been on hold, a series of recent state-level cases have highlighted the financial risks for Johnson & Johnson. In December, a Baltimore jury awarded $1.56 billion to a single plaintiff who alleged the company's baby powder caused their mesothelioma. Though the verdict is under appeal, it represents one of the largest awards in the history of talc litigation. Other recent verdicts include a $65.5 million award in Minnesota and a $40 million verdict in California, signaling juries' willingness to side with plaintiffs.
In a statement, J&J maintained its long-held position that its talc products are safe and do not cause cancer. Erik Haas, J&J's worldwide vice president of litigation, has previously stated that the company will continue to fight what it calls "baseless lawsuits."
Despite the gravity of the legal challenges, J&J's stock has remained resilient, trading near its 52-week high of $220.11. The company's vast and diversified business, which includes pharmaceuticals and medical devices, has historically insulated it from legal troubles in its consumer health division. Reflecting this, J&J has proactively addressed the product at the center of the controversy, ceasing all global sales of talc-based baby powder in 2023 and transitioning to a cornstarch-based formula, as noted on its corporate website.
Nonetheless, the special master's decision marks a pivotal moment. The ruling that plaintiffs' evidence is substantial enough to be presented in court could embolden more claimants. Plaintiffs' attorneys announced the decision as a major victory, allowing their clients' stories to be heard. For Johnson & Johnson, the failure of its multi-billion dollar settlement strategy, combined with this new legal setback, ensures that the talc litigation will remain a significant financial and reputational overhang for the foreseeable future.