Containers of Johnson and Johnson baby powder are displayed on a Walgreens shelf on April 05, 2023 in San Anselmo, California.
Justin Sullivan | Getty Images
Johnson & Johnson has reached a tentative settlement to resolve an investigation by more than 40 states into whether the company misled patients about the safety of its talc baby powder and other talc-based products, the company said in a statement to CNBC on Tuesday.
Notably, the settlement does not resolve the tens of thousands of consumer lawsuits, some of which are slated to go to trial this year, alleging that those talc-based products caused cancer. Those cases have for decades caused financial and public relations trouble for J&J, which contends that its now-discontinued talc products are safe for consumers.
J&J said in an October securities filing that 42 states and Washington, D.C., had launched a joint investigation into its marketing of talc-based products. The company will pay $700 million to settle it, its CFO Joseph Wolk told the Wall Street Journal Tuesday.
Last year, J&J set aside about $400 million to resolve U.S. state consumer protection claims.
Erik Haas, J&J’s worldwide vice president of litigation, confirmed the settlement in a statement to CNBC. He did not provide the payment amount or further details on the deal.
“Consistent with the plan we outlined last year, the company continues to pursue several paths to achieve a comprehensive and final resolution of the talc litigation,” Haas told CNBC. “As was leaked last week, that progress includes an agreement in principle that the Company reached with a consortium of 43 State Attorneys Generals to resolve their talc claims.”
Bloomberg first reported about the settlement earlier this month, citing sources familiar with the matter.
