J&J proposes paying $8.9B to settle talcum powder lawsuits

NEW BRUNSWICK, N.J. (AP) — Johnson & Johnson is earmarking nearly $9 billion to cover allegations that its baby power containing talc caused cancer. The amount more than quadruples that which the company had previously set aside to pay for its potential liability. Under a proposal announced Tuesday, a J&J subsidiary will re-file for bankruptcy protection and seek court approval for a plan that would result in one of the largest product-liability settlements in U.S. history. The $8.9 billion that J&J would transfer to the subsidiary, LTL Management, would be payable over the next 25 years. The amount is a significant increase from the $2 billion that the company previously set aside.