NEW BRUNSWICK (dpa-AFX) - Healthcare giant Johnson & Johnson (JNJ) on
Wednesday announced a proposed Plan of Reorganization, for the comprehensive and
final resolution of all current and future claims related to ovarian cancer
arising from cosmetic talc litigation against it and its affiliates in the
United States.

The consensual and Prepackaged Reorganization by its subsidiary, LLT Management
LLC is expected to resolve 99.75% of all pending talc lawsuits against Johnson &
Johnson and its affiliates in the United States.

The Plan provides for a three-month solicitation period during which ovarian
claimants would be informed of its terms and would have the opportunity to vote
for or against it. Such an opportunity was denied in prior bankruptcy cases. If
75% of claimants vote in favor of the Plan, a Company subsidiary would file a
consensual 'prepackaged' Chapter 11 bankruptcy to secure its confirmation.

The Plan commits the Company to pay ovarian claimants a present value of
approximately $6.475 billion to be paid over 25 years, which is expected to be a
far better recovery than the claimants stand to recover at trial.

To account for the comprehensive resolution of the ovarian claims through the
Plan, as well as the other settlements, the company has recorded an incremental
charge of approximately $2.7 billion in the first quarter of 2024. The total
reserve is approximately $11.0 billion or $13.7 billion nominal payable over 25
years.

The company clarified that it would continue to pursue alternative resolution
pathways while reiterating that none of the talc-related claims against it have
merit.



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