The First Cracks Appear
The foundation of this corporate crisis was laid decades ago. The central allegation that has fueled over 90,000 lawsuits is that J&J's talc-based products, including its iconic Baby Powder and Shower to Shower, were contaminated with asbestos, a known
carcinogen. Plaintiffs claim this contamination led to serious illnesses, primarily ovarian cancer and mesothelioma. While scientific debate has been a constant feature of the litigation, the legal challenges began mounting in the 2010s. A pivotal moment came in 2018 when a Missouri jury awarded an astonishing $4.69 billion to 22 women who alleged the products caused their ovarian cancer. Though later reduced, this verdict galvanized thousands more plaintiffs and signaled that juries were receptive to their claims, transforming the issue from a handful of lawsuits into a full-blown mass tort crisis.
The Science at the Center
At the heart of the legal battle is a scientific dispute. Talc and asbestos are minerals that can be found in close proximity in the earth, and plaintiffs allege that J&J knew for decades that its talc supply was sometimes contaminated but failed to warn consumers. Internal documents uncovered during litigation suggest the company was aware of asbestos traces in its talc as early as the 1950s and 1970s. J&J has consistently maintained that its products are safe, asbestos-free, and do not cause cancer, citing decades of independent scientific research. However, in the face of mounting litigation and what it called "misinformation," the company discontinued the sale of talc-based baby powder in North America in 2020 and globally in 2023, switching to a cornstarch-based formula.
A Controversial Legal Strategy
Facing an avalanche of lawsuits and staggering potential liability, J&J employed a controversial legal maneuver known as the "Texas two-step" in 2021. This strategy, permitted under a unique Texas law, involved creating a new subsidiary, LTL Management, and transferring all its talc-related liabilities to it. LTL then immediately filed for bankruptcy, which triggered an automatic stay on all lawsuits against it. The goal was to consolidate the tens of thousands of claims into a single bankruptcy court and resolve them via a settlement trust. However, courts repeatedly rejected this strategy, with judges ruling that J&J and its subsidiary were not in the kind of financial distress that bankruptcy protection is designed for.
The Road to a Global Settlement
After multiple failed bankruptcy attempts, J&J has shifted its strategy back to direct negotiations. Following some key court victories that strengthened its bargaining position, the company has come closer than ever to resolving the majority of the claims. In late July 2026, J&J announced a proposed settlement of $5.5 billion to resolve approximately 76,000 ovarian cancer lawsuits pending in federal and state courts. This proposal, which was negotiated with the plaintiffs' law firms outside of bankruptcy court, requires acceptance by 95% of claimants to become final. While the company has already settled most of the mesothelioma-related cases, this massive new deal aims to effectively end the decade-long ovarian cancer litigation that has dogged the company. If approved, J&J expects to make the bulk of the payments starting in 2027.
