Johnson & Johnson ordered to pay $750M in New Jersey talc case

Reuters is reporting that Johnson & Johnson was ordered on Thursday by a New Jersey state jury to pay punitive damages of $750 million to four plaintiffs who claim that the company’s baby powder caused their cancer, a ruling that will be reduced to around $185 million because of state laws, according to a lawyer for the plaintiffs and the company.

According to Reuters, during an earlier phase of the trial, a different jury held J&J liable for the plaintiffs’ cancers and awarded them $37.2 million in compensation.

Under New Jersey law, punitive damages are capped at five times the amount of compensatory damages, according to plaintiffs’ lawyer Chris Placitella.

J&J said in a statement it would quickly appeal both phases of the trial, citing “numerous legal errors that subjected the jury to irrelevant information and prevented them from hearing meaningful evidence.”

The verdict came after J&J Chief Executive Officer Alex Gorsky testified last month for the first time in a jury trial over allegations that the company’s Baby Powder causes cancer, according to Reuters.

“We believe the jury was speaking directly to Alex Gorsky,” plaintiffs lawyer Placitella said.

J&J is looking at more than 16,000 lawsuits alleging it sold powders contaminated with asbestos and failed to warn users. It also faces a federal criminal investigation into how forthright it has been about the product’s safety.

J&J denies that its talc causes cancer, saying numerous studies and tests by regulators worldwide have shown its talc to be safe and asbestos-free.