$966 million for a lie: how Johnson & Johnson concealed cancer risks from baby powder for years
8 October 22:18
A Los Angeles court has made a historic decision – Johnson & Johnson has been ordered to pay $966 million to the family of Mae Moore, who died of mesothelioma in 2021. According to the court, the disease was caused by prolonged use of baby powder with talcum powder containing asbestos, "Komersant Ukrainian" reports citing Reuters.
Of the total amount, $16 million is compensation payments (for medical expenses, non-pecuniary damage, etc.), and the remaining $950 million is punitive damages imposed for the company’s deliberate concealment of information about the risks.
Johnson & Johnson plans to appeal the decision, arguing that the plaintiff’s evidence is based on “junk science” – unverified or questionable scientific data. The company called the verdict “excessive and unconstitutional”.
This is one of the largest court decisions in the US in cases related to J&J’s talc-based products.
Litigation landscape: scale of claims and legal precedents
Johnson & Johnson is currently facing more than 67,000 lawsuits, most of which relate to ovarian cancer. A smaller share of cases is related to mesothelioma, a rare form of cancer caused by asbestos inhalation.
The company has tried several times to settle massive lawsuits by creating subsidiaries that declare bankruptcy, but the courts have blocked these schemes. In March 2025, a federal court rejected J&J’s plan with an $8 billion compensation fund.
At the same time, court decisions in individual cases differ significantly. In Oregon, for example, a $260 million verdict was overturned and a new hearing was scheduled. In Pittsburgh, the court found that the company had misinformed consumers, but failed to prove a direct link between the product and the disease.
Financial consequences: reputational damage and risks for investors
A fine of $966 million is significant even for a multinational corporation with an annual turnover of hundreds of billions of dollars. Johnson & Johnson may have to increase provisions for legal costs or reassess the risks on its balance sheet.
Experts point out that the appellate court may reduce the amount of the fine, as there is a rule in the US that fines should not exceed compensatory damages by more than nine times.
After a series of scandals, the company completely stopped selling talcum powder in the United States in 2020, replacing it with cornstarch-based products. This was an attempt to reduce legal and reputational risks.
For investors, such news is a signal of caution. J&J shares often react with short-term declines after large court verdicts, especially when there is a risk of new lawsuits. At the same time, the company is trying to maintain market confidence by actively developing its medical technology and pharmaceutical businesses, which generate the bulk of its profits.
Legal strategy: from bankruptcy to open processes
After being criticized by the courts, Johnson & Johnson officially abandoned its attempts to “hide” its liabilities through fictitious bankruptcies of its subsidiaries – LTL Management and Red River Talc. The judges called these actions an abuse of the bankruptcy procedure.
Instead, the company is returning to the regular court process (tort system) and at the same time offering collective settlements. In 2024-2025, J&J offered several large compensation packages, ranging from $6.5 billion to $8.2 billion. However, most of them have not yet been approved due to procedural disputes.
Impact on society: a precedent for corporate responsibility
Verdicts of this magnitude set new standards of corporate responsibility. For the families of the victims, these decisions send a signal that large corporations can no longer ignore scientific evidence of product toxicity with impunity.
Regulators are also stepping up their scrutiny: The FDA is revising its testing standards for cosmetic products to prevent asbestos in talcum powder. Against this backdrop, other companies working with mineral components have already begun to check their supply chains.
For consumers, the Johnson & Johnson case is a reminder of the importance of transparency and independent testing of household chemicals and cosmetics.
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Appeals, reputational losses and business restructuring
Despite the high-profile nature of the case, experts remind that no major verdict in the J&J cases has yet been finalized. The appellate courts may reduce the amounts or even overturn the decisions.
However, the very fact of such verdicts is an important psychological blow. It encourages the company to review its quality standards, internal control system, and customer communication policy.
In the coming years, Johnson & Johnson is likely to change its strategy in the consumer segment, reducing the share of cosmetic products and focusing on biotechnology, medical devices, and pharmaceuticals.
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