A Maryland jury ordered Johnson & Johnson (JNJ) to pay about $1.56 billion to a woman who claimed the company’s talc-based baby powder caused her cancer. The case is the largest verdict so far for a single plaintiff tied to claims that the product was tainted with asbestos.
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The jury found that Johnson & Johnson, two of its units, and its former consumer health spinoff Kenvue (KVUE) failed to warn the public that its talc products might contain asbestos. The woman, who is 54, used the powder for over 40 years and was later diagnosed with mesothelioma. That form of cancer is closely linked to asbestos exposure.
Meanwhile, JNJ shares rose 0.46% on Monday, closing at $207.32.
Legal Pressure Builds as Trials Resume
Johnson & Johnson said it will appeal the decision, calling the ruling flawed and the process unfair. The company also stated that its baby powder never contained asbestos and that talc is safe. Johnson & Johnson has said it will take full responsibility for verdicts tied to Kenvue, since it agreed to cover baby powder liabilities during the spinoff.
So far, Johnson & Johnson has paid over $3 billion to settle thousands of lawsuits related to talc. But more than 70,000 cases remain open. Most of them claim the baby powder caused either mesothelioma or ovarian cancer. These cases are being handled in courts across the country, including a large group consolidated in New Jersey.
This latest verdict comes after Johnson & Johnson tried multiple times to resolve the claims through bankruptcy filings. Courts rejected those moves, which have now pushed the company back into jury trials. Earlier this month, a Los Angeles jury awarded $40 million to two women in a separate ovarian cancer case. In Minnesota, another jury ordered the company to pay over $65 million in a similar case.
In the Baltimore trial, the jury awarded $60 million in damages and added $1.5 billion in punitive damages split between Johnson & Johnson and its unit, Pecos River Talc. The jury said the company misled consumers and regulators about the safety of its talc products.
Shift in Product Strategy
In 2022, Johnson & Johnson removed talc-based baby powder from its global product line. The company replaced it with a cornstarch version. At the time, Johnson & Johnson said the move was based on business decisions and not related to product safety.
Internal company records presented in the trial suggested that executives were aware of asbestos concerns as early as the 1970s. Lawyers for the woman said this information was not shared with the public.
With more verdicts now coming in and several trials set for next year, the company could face continued legal and financial pressure. Investors may monitor further developments as Johnson & Johnson works to manage its exposure across multiple court cases.
Is JNJ a Good Stock to Buy?
On the Street, Johnson & Johnson boasts a Moderate Buy consensus rating. The average JNJ stock price target is $216.75, suggesting a 4.55% upside from the current price.
