Johnson & Johnson (JNJ) Stock: Jury Orders $1.5 Billion Payment in Talc Cancer Lawsuit

TLDR

• A Baltimore jury awarded over $1.5 billion to Cherie Craft, who developed peritoneal mesothelioma after using Johnson & Johnson’s talc-based baby powder
• The verdict includes $59.84 million in compensatory damages and $1.5 billion in punitive damages split between J&J and its subsidiary
• Johnson & Johnson plans to appeal the decision, calling it “egregious” and “unconstitutional”
• The company faces over 67,000 lawsuits related to talc products and cancer claims
• J&J stopped selling talc-based baby powder in the U.S. in 2020 and globally in 2023

A Baltimore jury delivered a massive blow to Johnson & Johnson on Monday, ordering the healthcare giant and its subsidiaries to pay more than $1.5 billion to a single plaintiff in a talc cancer case. The verdict represents the largest-ever sum awarded against J&J for an individual plaintiff in these ongoing legal battles.

The Circuit Court for Baltimore City found J&J, two of its subsidiaries, and spinoff Kenvue liable for failing to warn Cherie Craft that its baby powder contained asbestos. Craft was diagnosed with peritoneal mesothelioma in January 2024.

Johnson & Johnson, JNJ

The award breaks down to $59.84 million in compensatory damages and punitive damages totaling $1.5 billion. J&J received a $1 billion punitive damage assessment, while its subsidiary Pecos River Talc was hit with $500 million.

Company Maintains Products Are Safe

J&J wasted no time announcing its intention to appeal. Erik Haas, the company’s worldwide vice president of litigation, called the ruling “egregious” and “patently unconstitutional.” He argued the decision resulted from “gross errors” by the trial court.

This isn’t J&J’s first rodeo with large talc verdicts. Earlier in December, a California jury awarded $40 million to two women who blamed the company’s baby powder for their ovarian cancer.

Mountain of Legal Claims

The company faces a staggering backlog of over 67,000 lawsuits from plaintiffs claiming cancer diagnoses after using its baby powder and other talc products. J&J has consistently denied these allegations.

The company has tried to resolve the litigation through bankruptcy settlements worth billions. Courts have rejected those attempts.

J&J stopped selling talc-based baby powder in the United States in 2020. The company ended global sales in 2023, switching to cornstarch-based alternatives instead.

Many previous large awards against J&J in talc cases have been reduced or overturned on appeal. The company has set aside billions of dollars for litigation costs and settlements.

Peritoneal mesothelioma is a rare cancer affecting the lining of the abdomen and abdominal organs. It’s most commonly linked to asbestos exposure. While no cure exists, treatments like surgery, chemotherapy, and palliative care can help manage symptoms.

The Maryland jury found J&J and Kenvue liable for failing to provide adequate warnings about potential asbestos content in their talc products.

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