J&J Shareholders Vote to Continue Global Sales of Talc-Based Baby Powder
Written by Tara Strand on July 14, 2022
In April 2022, Johnson & Johnson (J&J) shareholders voted to continue selling its talc-based baby powder outside North America. At this time, more than 65,000 lawsuits have been brought against the company, claiming the powder causes cancer. J&J is currently undergoing bankruptcy proceedings to address related litigation.
In 2018, the Food and Drug Administration (FDA) found asbestos in the talc-based baby powder. In 2019 and 2020, J&J recalled and eventually stopped selling the talc-based product in the US. Since then, nearly 200 organizations have been calling to ban the product globally. Despite this, sales of the J&J baby powder have continued abroad.
This blog post was originally published in July 2022. It discusses a J&J shareholder vote to continue selling talc-based baby powder outside of North America.
Since the post’s original publication, J&J has updated its plans. In August 2022, J&J released new plans to stop global sales of talc-based powder by 2023. This decision came after years of concern over this product’s safety. Previously, J&J stopped sales in North America but continued sales in many other countries. Now, J&J says it will make a global switch to its cornstarch-based powder instead.
Talc-Based Baby Powder Still Sold in Global Markets
Since 2020, nearly 200 organizations have been calling to globally ban J&J’s talc-based baby powder. In April of this year, J&J shareholders voted on a proposal to end sales outside of North America. The proposal said selling the talc-based powder could take away from J&J’s image as a trusted company.
So far, the company has taken some action in North America. In 2019, J&J stopped sales of the talc product in Canada and the United States. The company says this was only so manufacturing could focus on high-demand medicines. The company still sells cornstarch-based baby powder in North America. Despite having the option of this cornstarch alternative, shareholders chose to continue selling talc-based baby powder globally.
J&J’s Talc-Based Baby Powder and Cancer Concerns
Until recently, J&J’s baby powder had been exclusively talc-based. Talc has been linked to numerous health concerns. It is a naturally occurring mineral that is often found near asbestos. During mining, the two minerals can intermingle. Asbestos is a dangerous carcinogen. Since the 1950s, some testing has found asbestos in J&J’s baby powder.
In 2018, the FDA found asbestos in samples of J&J baby powder. The company recalled 33,000 bottles of powder, eventually stopping North American sales. J&J claims this is unrelated and that its baby powder is safe and asbestos-free. Still, thousands of people have linked their cancer diagnosis with their use of J&J’s baby powder.
- There are more than 65,000 active and pending lawsuits against the company.
- Plaintiffs claim the talc powder caused cancers, like mesothelioma and ovarian, to develop.
- Some company memos also show J&J sold its baby powder while knowing about asbestos risks.
Despite evidence linking talc and cancer, J&J claims the science doesn’t support this connection. The company has fought these lawsuits and continues to do so.
J&J’s Controversial Bankruptcy Filing Process
So far, J&J has spent more than $4.5 billion in litigation costs and awards related to these cases. As the number of lawsuits grew, the company began pursuing a controversial legal tactic. This tactic, called the Texas Two-Step, is a specific type of bankruptcy filing.
First, J&J created and funded a subsidiary named LTL Management LLC (LTL). Then, LTL absorbed the liabilities associated with talc litigation. LTL filed for bankruptcy protection shortly after. While J&J is worth more than $400 billion, it only funded LTL with $2 billion. This may limit the financial impact on J&J from talc litigation.
Some say that J&J’s overall response shows the company puts profit over people. Internal emails referred to the powder as a “sacred cow” of its product offerings that had to be protected. This perspective may provide insight into why shareholders voted to continue global sales.
Sources
Dunleavy K. Amid legal tumult, J&J shareholders reject proposal to end talc sales worldwide. FiercePharma. April 2022.
Girion L. Johnson & Johnson knew for decades that asbestos lurked in its Baby Powder. Reuters. December 2018.
Hsu T and Rabin R. Johnson & Johnson Will Discontinue Talc-Based Baby Powder Globally in 2023. The New York Times. August 2022.
Johnson & Johnson. (2022, April). Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934. (Form DEF 14A), United States Securities and Exchange Commission.
Mann B. Rich companies are using a quiet tactic to block lawsuits: bankruptcy. NPR. April 2022.
Reinstein L. ADAO Joins the Black Women for Wellness and Nearly 200 Organizations to Demand Johnson & Johnson Halt Global Sales of Popular Baby Powder Product. Asbestos Disease Awareness Organization. July 2020.
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Tara Strand specializes in writing content about mesothelioma and asbestos. She focuses on topics like mesothelioma awareness, research, treatment, asbestos trust funds and other advocacy efforts.
