Under a proposal, a J&J subsidiary will re-file for bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in U.S. history.
A federal judge has allowed a Johnson & Johnson spinoff to proceed with a controversial bankruptcy, despite complaints from thousands who say they were harmed by the company's baby powder.
Johnson & Johnson spun off liabilities — including roughly 38,000 lawsuits — linked to claims of asbestos contamination in its baby powder to a new firm, which then declared bankruptcy.
The complaint claims the New Jersey-based company made Black women a "central part" of its business strategy but failed to warn them about the potential dangers of the powder products it was selling.
The company said demand has declined "fueled by misinformation around the safety of the product and a constant barrage of litigation advertising." Lawsuits allege the powder causes cancer.
In a large prospective study, researchers failed to find a significant association between use of powder for genital hygiene and ovarian cancer.