The daily business briefing: April 5, 2023

Johnson & Johnson agrees to $8.9 billion talc settlement, the Justice Department charges founder of college-aid firm Frank with fraud, and more

Johnson & Johnson Baby Powder
(Image credit: Peter Dazeley/Getty Images)

1. J&J proposes $8.9 billion talc settlement

Johnson & Johnson said Tuesday it had agreed to pay $8.9 billion over the next 25 years to settle tens of thousands of lawsuits over claims its iconic Baby Powder and other talc products caused cancer. The company originally offered $2 billion. The settlement came after an appeals court in January invalidated J&J's attempt to dump its talc liability onto a new subsidiary that promptly filed for bankruptcy protection, a move known as a "Texas two-step" bankruptcy. The subsidiary, LTL Management, filed for bankruptcy protection again on Tuesday with a reorganization plan that included the proposed settlement. The company said about 60,000 talc claimants had signed off on the proposal.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.