Johnson & Johnson has announced that it is moving forward with a proposed $6.475 billion settlement of tens of thousands of lawsuits alleging that its baby powder and other talc products contain asbestos and cause ovarian cancer. This settlement would allow the company to resolve the lawsuits through a third bankruptcy filing of a subsidiary company.
The deal would require a three-month voting period to reach consensus on a settlement of all current and future ovarian cancer claims, which account for 99% of the talc-related lawsuits filed against J&J. While J&J claims that its products do not contain asbestos and do not cause cancer, the company has faced significant legal pressure, with courts rebuffing its two previous efforts to resolve the lawsuits through bankruptcy.
Despite the settlement, J&J still faces significant legal challenges, with trials resuming after a federal judge ruled that the latest bankruptcy case should be dismissed in July 2023. In March, the company received a new chance to contest the scientific evidence linking talc to ovarian cancer in the centralized litigation in New Jersey federal court.
The settlement is a small fraction of J&J's annual profits, which total around $20 billion. While the company has settled with about 95% of people who have sued it after developing mesothelioma, a rare form of cancer linked to asbestos exposure, and with U.S. states that have alleged that the company failed to warn consumers about the dangers of its talc products, much more needs to be done to hold the company accountable.
The litigation has resulted in some large verdicts for plaintiffs, including a $2.12 billion award in favor of 22 women who blamed their ovarian cancer on asbestos in J&J talc. In the past month, J&J was ordered to pay $45 million in a mesothelioma case while winning an ovarian cancer case.
J&J's settlement is a drop in the bucket compared to the harm caused by its products. The company's talc products have been linked to ovarian cancer and mesothelioma, and it has faced widespread criticism for its handling of the issue. While the settlement may provide some relief to those affected, it does not absolve J&J of its responsibility to ensure the safety of its products and to warn consumers of potential dangers.
Furthermore, the settlement does not address the root causes of the problem, including the company's failure to adequately test its products for asbestos and its aggressive marketing tactics. J&J has been accused of prioritizing profits over people, and this settlement does little to change that narrative.
In conclusion, while the $6.475 billion settlement is a significant amount, it is small change for a company that generates $20 billion in profits annually. Much more needs to be done to hold J&J accountable for its actions and to ensure that it prioritizes the safety and well-being of its consumers. The settlement is a step in the right direction, but it is only the beginning of what needs to be a long and difficult process of accountability and reform.
Johnson & Johnson generated $93.77 billion in revenue in 2023, according to their annual report. Their net earnings were $20.77 billion.
Here's a breakdown of their financial performance for 2023:
- Revenue: $93.77 billion
- Net earnings: $20.77 billion
- Earnings per share (EPS): $7.81
- Operating margin: 25.1%
- Net margin: 22.1%
Keep in mind that these figures are subject to change and may not reflect the company's current financial situation.
Johnson & Johnson are earning big money while millions of US citizens are drowning in medical debt. 70% of bankruptcies in the US are because of medical debt. This shows a total disregard for the suffering of millions of US citizens. It is time that US leaders address this critical issue and create an environment wherein people suffering from chronic diseases has a realistic chance to live their lives with dignity. Shame on you Johnson & Johnson.
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