Johnson & Johnson (JNJ) Stock: Record $1.5 Billion Talc Verdict Rocks Healthcare Giant

TLDR

• Baltimore jury orders Johnson & Johnson to pay $1.5 billion to cancer patient Cherie Craft
• Verdict represents largest single-plaintiff award in company’s talc litigation history
• J&J and subsidiary liable for failing to warn about asbestos in baby powder products
• Company faces 67,000 additional lawsuits and plans immediate appeal
• JNJ stopped global talc baby powder sales in 2023

Johnson & Johnson took a major legal hit Monday when a Baltimore jury ordered the company to pay over $1.5 billion to a woman who developed cancer from its baby powder. The verdict marks the largest single award in the company’s ongoing talc litigation crisis.

Cherie Craft won the case after jurors found J&J and its subsidiaries failed to warn consumers about asbestos in their talc-based products. She was diagnosed with peritoneal mesothelioma in January 2024 after using baby powder daily for years.

Johnson & Johnson, JNJ

The Circuit Court for Baltimore City awarded Craft $59.84 million in compensatory damages. Punitive damages totaled $1.5 billion, with $1 billion assessed against J&J and $500 million against subsidiary Pecos River Talc. Spinoff company Kenvue was also found liable.

J&J Fires Back With Appeal Plans

The company wasted no time rejecting the verdict. Erik Haas, J&J’s worldwide vice president of litigation, called the ruling “egregious” and “patently unconstitutional.”

Legal Troubles Continue Mounting

This isn’t J&J’s only recent courtroom loss. A California jury awarded $40 million earlier in December to two women who blamed baby powder for their ovarian cancer.

The company now faces over 67,000 lawsuits from plaintiffs claiming cancer after using its talc products. J&J has consistently denied all allegations linking its products to cancer.

Previous attempts to settle through bankruptcy deals worth billions have failed. Courts rejected those proposals.

Product Changes Already Implemented

J&J pulled talc-based baby powder from U.S. shelves in 2020. The company ended worldwide sales in 2023, switching entirely to cornstarch-based formulas.

Many large verdicts against J&J in talc cases have been reduced or overturned on appeal. The company has reserved billions for litigation expenses as cases continue nationwide.

Peritoneal mesothelioma affects the abdomen lining and is primarily linked to asbestos exposure. No cure exists, but surgery and chemotherapy can manage symptoms.

The Maryland verdict adds pressure on J&J as it navigates thousands of pending cases while maintaining its products never contained dangerous asbestos levels.

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