Johnson & Johnson continues to face legal challenges over allegations that its talcum powder causes cancer. Recently, a judge dismissed the company’s latest attempt to settle thousands of lawsuits through bankruptcy, marking the second time J&J’s bankruptcy strategy has been rebuffed. We take a look at the timeline of the talc litigation below.

Johnson & Johnson is planning on spinning off its consumer unit, which will be known as “Kenvue.” The separation of the unit could happen later this year.

The company’s talc-related troubles started in 2009 when the first lawsuit was filed against J&J alleging its talc products caused a woman’s ovarian cancer. By 2016, J&J suffered its first significant legal defeat with a $72 million verdict. In 2018, a jury ordered the company to pay $4.69 billion to cancer victims.

Johnson & Johnson began selling its Baby Powder brand of talcum powder in 1894.

Now, the company has stopped selling the product in North America. J&J announced that decision in May 2020 facing rising legal costs. It has asserted that its products were safe. In 2021, J&J implemented a contentious bankruptcy strategy to shield itself from legal liability, transferring talc lawsuits to a new subsidiary, LTL Management, which immediately filed for Chapter 11.

An appeals court overturned this move in January, ruling that J&J could not offload liabilities while financially sound. Undeterred, LTL filed for bankruptcy again in July 2023, citing a proposed $8.9 billion settlement deal. A judge, however, rejected the petition, ruling that the talc lawsuits did not put LTL into enough “financial distress.”

Now, after almost 38,000 lawsuits and roughly $4 billion in payouts, the company continues to navigate litigation while phasing out talc internationally. The company also plans to appeal the latest bankruptcy dismissal. But after more than a decade of courtroom battles, J&J remains embroiled in allegations that its iconic talc products posed a risk to consumers.

A J&J talc litigation timeline

An overview of important events in the talcum-powder litigation:

• 1957-1958: Reports from a consulting lab indicate that talc from J&J’s Italian supplier contained contaminants described as “fibrous” and “acicular” tremolite, a type of asbestos, according to Reuters.
• 1967: J&J discovers traces of two minerals that can occur as asbestos in its Vermont talc mine.
• 1971: The FDA launches an inquiry into asbestos in talcum powders after New York City’s environmental protection chief reveals that two unspecified brands of cosmetic talc appear to contain asbestos. J&J stresses that its baby powder does not contain asbestos.
• 1972–1975: Despite its public denial, internal J&J tests found asbestos in its talc, Reuters noted.
• 1973: J&J applies for patents on a process to remove asbestos from talc, hinting the company was aware of contamination, according to Reuters.
• 1976: As the FDA mulls limits on asbestos in cosmetic talc products, J&J tells the regulator that it had not detected any asbestos  in its talc samples from December 1972 to October 1973.
• 1980: J&J begins to offer a cornstarch formulation of its Baby Powder.
• 1999: Darlene Coker, who developed mesothelioma, drops her lawsuit against J&J for lack of evidence, despite her lawyer’s belief that J&J’s talcum powder was the cause. Reuters reported on Coker’s case.
• 2009: The FDA commissions tests on 34 samples, including a bottle of J&J Baby Powder, but no asbestos is detected.
• December 4, 2009: Deane Berg files first lawsuit against J&J alleging its talcum products caused ovarian cancer, marking the start of ongoing litigation. Berg would go on to win the case in 2013, but the jury did not award damages.
• February 22, 2016: A jury orders J&J to pay $72 million in damages in a civil case. The decision was its first major courtroom loss in the talc cases.
• July 12, 2018: J&J ordered to pay a $4.69 billion to cancer victims, stoking a surge of lawsuits.
• May 19, 2020: With legal costs mounting, J&J stops selling talc baby powder in North America amid safety concerns.
• October 14, 2021: J&J shifts talc lawsuits to a new subsidiary, LTL Management, which declares bankruptcy.
• August 11, 2022: J&J announces plans to phase out global sales of talc baby powder, transitioning to cornstarch formula.
• January 30, 2023: An appeals court rebuffed J&J’s bankruptcy strategy, ruling it improperly offloaded lawsuits.
• July 28, 2023: A judge rejects J&J’s second attempt at a bankruptcy settlement, handing the company another setback.

Analysis

In recent years, J&J has faced a fair degree of financial turbulence. Prominent headwinds include the talcum-powder litigation and the COVID-19 pandemic. While the initial talc lawsuit in 2009 had little impact, the escalating lawsuits likely contributed to a stock dip in early 2020 along with the pandemic. In response, J&J made a strategic decision in May 2020 to stop selling talc powder in North America. Despite some periods of stock volatility, J&J’s stock has been mostly resilient overall, rebounding 30% in 2020 on vaccine progress — though COVID-19 vaccine sales disappointed. In 2022, the company’s pharma division raked in $52.6 billion in revenue. Its medical device sales and strategic spin-off of its consumer unit also appear to support growth amid economic uncertainty. Still, the protracted talc litigation remains a complex financial variable, though other factors continue to drive J&J’s stock performance.