NEW JERSEY — Johnson & Johnson has agreed to pay an estimated $5.5 billion to resolve lawsuits alleging its talc products caused ovarian cancer. The settlement covers approximately 76,000 claims in U.S. federal and state courts.

The agreement follows the rejection of a previous $9 billion settlement proposed by Johnson & Johnson subsidiary Red River Talc last year. A U.S. bankruptcy court judge denied that proposal, and the company decided not to appeal the ruling.

The settlement is conditioned on the participation of at least 95% of the remaining claimants. Under the terms of the deal, Johnson & Johnson will make an initial payment of no more than $3 billion in 2027. The company has no additional payments due until 2028.

The settlement assigns specific values to qualifying ovarian cancer claims but does not cap the total payout. Plaintiffs' attorney Chris Seeger stated the total payout could reach $7 billion or more. "We got a fair settlement, and our clients are going to be happy with it," Seeger said.

he noted that the resolution provides benefits distinct from the prior bankruptcy strategy. He stated that the exclusion of future claims made more money available to current plaintiffs than the bankruptcy proposal did. He added that the settlement accelerates payments so that all claims will be paid within 18 months instead of being spread out over more than a decade.

Johnson & Johnson maintained its position on the scientific validity of the allegations. Erik Haas, Johnson & Johnson worldwide vice president of litigation, said in a prepared statement that the claims were meritless. Haas said the lawsuits lack scientific merit.

"The Court's order placed plaintiffs in an untenable position of having to present specific causation evidence to maintain their claims that does not exist," Haas said. He explained the company's decision to settle despite its confidence in the science. "While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives," he said.

The company stated that studies show talc is safe, does not contain asbestos, and does not cause cancer. The current agreement applies only to existing claims and does not address future lawsuits. Litigation resumed in March 2025 after being put on hold for more than three years while Johnson & Johnson pursued a strategy known as the Texas two-step.

During that period, Johnson & Johnson filed three bankruptcies through a shell-company subsidiary in an effort to settle the cases, and each bankruptcy ended in dismissal. A federal judge ordered plaintiffs to show why remaining pending talc claims should not be dismissed after witnesses could not provide a direct link between the product and cancer. A multibillion-dollar verdict was issued in favor of 22 women who said baby powder caused their ovarian cancer before the bankruptcy attempts.

Johnson & Johnson previously settled about 95% of filed lawsuits for mesothelioma, all state consumer protection claims, and all talc-supplier disputes. Johnson & Johnson shares rose more than 2% before the market opened on Tuesday.

The company has taken steps to remove the product from the market in recent years. Johnson & Johnson stopped selling talc-based baby powder in the U.S. in 2020. The company stopped selling talc-based baby powder worldwide in 2023.

In 2024, the World Health Organization classified talc as probably carcinogenic to humans. The World Health Organization is a United Nations agency concerned with international public health.

The settlement does not cover the United Kingdom, where a product liability case covering more than 7,000 potential claimants is being adjudicated. A lawsuit filed in October 2025 in the UK High Court alleges Johnson & Johnson knew its talc could cause cancers but continued to sell the product.

Johnson & Johnson's former consumer health business, Kenvue, holds liability for Johnson's baby powder outside North America. Kenvue was spun off from Johnson & Johnson in 2022.