(MENAFN) Johnson & Johnson has agreed to pay $8.9 billion in order to settle all cancer lawsuits associated with its talc-based powders. The company hopes to settle complaints from approximately 60,000 claimants and fund a trust to cover future claims. J&J has already withdrawn its talc-based baby powder and Shower to Shower from the market, and has filed for Chapter 11 bankruptcy to provide a basis for the trust.

The company wants a reorganization plan for LTL that caps all the talc liabilities. If enough victims agree to join the accord, J&J will be freed from defending against cancer claims tied to baby powder and other products contaminated with asbestos. The payouts in the settlement will be distributed over 25 years, and following the announcement, shares of J&J rose as much as 3% in trading after US markets closed on Tuesday.

Juries have ruled against the company in nearly a dozen such suits over the years, including the one challenged in the US Supreme Court. In 2018, J&J was forced to pay $2.5 billion to a group of 20 women whose case went to trial. The company is hoping to contain the liability within a bankruptcy filing by one of its units and wants to make a fresh attempt to settle the decade-long litigation.

Erik Haas, J&J's global head of litigation, said, "Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner." An earlier filing, which did not include a settlement, was rejected in January after an appeals court found J&J erred in using bankruptcy to block juries from hearing lawsuits and handing out damage awards.

This case is a reminder of the importance of companies vetting the safety of their products and the potential risks associated with them. The settlement is a significant amount, and it demonstrates the financial implications of not properly testing products for safety. It also highlights the importance of companies taking responsibility for their mistakes and compensating those who have been harmed by their products.

In conclusion, Johnson & Johnson has agreed to pay $8.9 billion to settle all cancer lawsuits associated with its talc-based powders. The company hopes to settle complaints from approximately 60,000 claimants and fund a trust to cover future claims. The payouts in the settlement will be distributed over 25 years. This case is a reminder of the importance of companies vetting the safety of their products and the potential risks associated with them, and of taking responsibility for their mistakes and compensating those who have been harmed by their products.

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