Why This Company Paying 48k Crores To Customers?

Article by Kumar Published on: 11:23 pm, 28 July 2026

Johnson & Johnson is one of the most popular and largest healthcare companies in the world with a long standing reputation among customers. The company’s baby talc powder was among the best selling products for many decades until 2020.

Unfortunately, the same product has landed the company in a massive legal entangle as thousands of women filed cases with the allegation that it caused them to develop ovarian cancer. Hundreds of lawsuits were filed over the last one and a half decade in which women claimed that the powder contained tiny traces of asbestos, which is a harmful material known to cause cancer.

Despite denying the allegations and fighting the cases all these years, Johnson & Johnson has finally decided to pay around $5.5 billion to settle about 76,000 existing court cases in the United States. The company will shell out nearly 48 thousand crores as it wants not to pursue the legal cases and settle the matter once for all.

To make this deal final, at least 95 percent of the people who filed these cases must agree to it. If approved, most payments will be made to the victims in 2027 and 2028.

The American pharmaceutical company still maintains that decades of scientific tests prove its talc products are safe and free of harmful chemicals. However, company officials decided to pay the money to avoid spending more time and high legal fees in court.

Due to growing concerns and falling sales, Johnson & Johnson stopped selling talc-based baby powder in North America in 2020. They later stopped selling it worldwide. The company replaced the original talc formula with a safer cornstarch-based ingredient for all its baby powder products.

Legal experts say the total payout could go above $7 billion depending on how many victims join the deal. If 95 percent of the claimants do not accept the offer, the company will have to fight these cases in court again.