J&J to Appeal After $1.5 Billion Talc Cancer Verdict

• The award includes $59.84 million in compensatory damages plus $1 billion in punitive damages against J&J and $500 million against subsidiary Pecos River Talc
• J&J faces lawsuits from over 67,000 plaintiffs claiming talc products caused cancer and has set aside $11 billion for litigation costs
• The company stopped selling talc-based baby powder in the U.S. in 2020 and globally in 2023, switching to cornstarch alternatives

J&J Faces Record $1.5 Billion Talc Verdict in Baltimore

A Baltimore jury has ordered Johnson & Johnson and its subsidiaries to pay $1.5 billion to Cherie Craft, who developed peritoneal mesothelioma after decades of using the company's talc-based products. This marks the largest single-plaintiff award against J&J in talc litigation to date.

Key Financial Details:

• Total award: $1.5 billion
• Compensatory damages: $59.84 million
• Punitive damages: $1 billion against J&J, $500 million against subsidiary Pecos River Talc
• J&J has set aside billions for litigation costs and settlements
• Company faces over 67,000 talc-related lawsuits

Companies Involved:

• Johnson & Johnson (primary defendant)
• Pecos River Talc (J&J subsidiary)
• Kenvue (J&J spinoff, found liable)

Market Context:

The verdict follows a December California jury decision awarding damages to two other women for ovarian cancer claims. J&J discontinued talc-based baby powder sales in the U.S. in 2020 and globally in 2023, switching to cornstarch alternatives. The company's previous bankruptcy settlement attempts to resolve these claims have been rejected by courts.

Company Response:

J&J plans to immediately appeal, calling the verdict "egregious" and "unconstitutional." The company maintains its talc products are safe and asbestos-free, citing the ruling as based on "junk science" and "gross errors" by the trial court.

Investment Implications:

This substantial verdict adds to J&J's mounting legal exposure from talc litigation, potentially affecting the company's financial reserves and future earnings. While many large awards have been reduced or overturned on appeal, the volume and size of recent verdicts signal continued legal risk for the pharmaceutical giant.