Johnson & Johnson To Add $1.1 Billion To Proposed Talc Settlement

Johnson & Johnson revealed plans to pay an additional $1.1 billion to its talc settlement proposal to resolve thousands of suits, alleging that its baby and other talcum powder caused cancer.

Reuters reported that two persons who are familiar with the J&J issue stated that the planned additional amount will further bolster the settlement to more than $9 billion, which will be distributed over a period of 25 years.

On Wednesday, J&J revealed that the lawyer of the plaintiffs Allen Smith who represent 12,000 clients agreed to recommend the settlement to the affected parties.

The healthcare major said the Smith agreed to the offer provided that the company will provide "additional monetary and non-monetary benefits for all talc claimants," which would be drawn out in a bankruptcy plan. J&J also expects that the judge would approve the settlement plan.

J&J was preparing to have one of its subsidiaries declare bankruptcy for the finalization of the company's proposed talc settlement, with the goal of reaching an agreement before the month end.

However, the company said it would not be filing for a Chapter 11 bankruptcy but will continue its operations. It reiterated that its talc products are safe to use and do not cause cancer.

In June, Illinois Attorney General Kwame Raoul, one of the lawyers who also sued J&J, stood pat on holding the company accountable.

"Consumers rely on accurate information when making decisions about which products to purchase for their families," Raoul said.

"Any company — no matter how large — must be held accountable when laws protecting consumers are broken and their trust is violated," he added on CBS report.