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J&J’s $8.9 Billion Talc Deal Faces Key Test in Oakland Trial

Submitted by jhartgen@abi.org on

Johnson & Johnson’s first jury trial in nearly two years over allegations that its talc-based baby powder causes cancer could influence plaintiffs weighing the $8.9 billion settlement offer put forth by the company last month, Bloomberg News reported. The trial in Anthony Hernandez Valadez’s suit alleging he got mesothelioma from asbestos-contaminated talc in J&J products is scheduled to go before a jury Wednesday in state court in Oakland, California. Due to Valadez’s failing health, the case was allowed to proceed as an exception to the order putting all litigation on hold after J&J sought to wall off all of its talc liability in a chapter 11 bankruptcy for its LTL Management unit. J&J, which is trying to settle more than 40,000 talc cases in the bankruptcy, must convince 75% of plaintiffs to back its settlement offer. The company is hoping the chapter 11 halt to most jury trials will help it build support for the deal. But a big award for Valadez could convince more plaintiffs to go to trial, potentially tanking the deal. Over the years, New Brunswick, New Jersey-based J&J has steadfastly maintained its baby powder — sold in distinctive white bottles — never contained asbestos, is safe and doesn’t cause cancer. Executives say they are seeking a settlement to avoid billions in legal fees and expenses, along with a new wave of trials. “The company deeply sympathizes with anyone suffering from cancer and understands they are looking for answers,” J&J said in a statement on the Valadez trial. “However, the science doesn’t support that the exceedingly rare form of mesothelioma at issue in this case is connected to talc exposure.” In 2021, another Oakland jury awarded a woman more than $26 million in a talc case against the J&J. The company is appealing the verdict.