Johnson & Johnson Ordered to Pay $966M to Woman's Family

A jury in Los Angeles has ordered Johnson & Johnson to pay $966 million to the family of Mae Moore, a California woman who died in 2021 at the age of 88 after developing mesothelioma, a rare cancer. The lawsuit alleged that Moore's long-term use of Johnson & Johnson's talcum powder exposed her to asbestos, a substance known to cause cancer. The verdict includes $16 million in compensatory damages and a hefty $950 million in punitive damages, reports the New York Times.

Erik Haas, the company's vice president of litigation, described the verdict as "egregious and unconstitutional." Johnson & Johnson, which has faced a barrage of lawsuits over claims that its talc-based baby powder is contaminated with asbestos, stated it will "immediately" appeal the decision. Reuters notes that the amount awarded could be reduced upon appeal, "as the US Supreme Court has found that punitive damages should generally be no more than nine times compensatory damages."

Johnson & Johnson maintains that its product neither contains asbestos nor causes cancer, though it stopped selling its talc-based powder worldwide in 2023 after mounting legal challenges. The verdict follows a recent setback for Johnson & Johnson in bankruptcy court, where a federal judge rebuffed an attempt to settle all talc-related complaints with a $9 billion bankruptcy plan. The court found flaws in the procedure and insufficient approval from claimants. It marked the third unsuccessful attempt by the company to use bankruptcy to resolve thousands of similar claims.

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Johnson & Johnson had previously set up a subsidiary, LTL Management, to manage liabilities in what plaintiffs labeled the "Texas two-step." However, courts have repeatedly blocked this maneuver as a protection from liability. With more than 90,000 lawsuits still pending, Johnson & Johnson says it will continue to contest what it calls "meritless" claims, adding that it has reserved $7 billion to take care of the bankruptcy. Internal company records reportedly indicated past concerns about asbestos in its talc products. "It took this family five years to get their day in court, and we're pleased the jury concluded J&J should be held accountable," says a lawyer for Moore's family, per Bloomberg.