Johnson And Johnson To Pay $700m To Settle Claims It Misled Consumers

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J&J loses third attempt to settle cancer litigation in bankruptcy court

Johnson & Johnson said it would return to regular civil court to resolve the over 90,000 claims against it.

4/1/25 7:28AM

Johnson & Johnson slipped in premarket trading after a federal judge rejected its third attempt to settle over 90,000 claims that its talcum powder caused cancer in one fell swoop.

US Bankruptcy Judge Christopher Lopez on Monday evening said that Johnson & Johnson’s execution of a $9 billion settlement with cancer victims proposed last year was flawed. The company denies that talc-based baby powder is harmful, though it stopped selling the product worldwide in the past few years.

This is Johnson & Johnson’s third attempt at a “Texas two-step” bankruptcy, in which a company creates a subsidiary, offloads assets that are subject to litigation there, then files for bankruptcy. Once bankrupt, Johnson & Johnson (or rather, its subsidiary, Red River Talc) could end all current and future talc claims if it secures approval from 75% of claimants on its settlement proposal.

About 83% of plaintiffs, many eager to get a payout sooner rather than later, agreed to the proposal, according to Johnson & Johnson. In a statement following the ruling, Johnson & Johnson said that it would return to regular civil court to resolve the claims and called the talc litigation “plaintiff-lawyer driven fake tort, premised on junk science and fueled by third party litigation financing including from foreign sovereign wealth funds.”

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eBay stock slumps on gloomy Q4 outlook despite solid Q3 earnings

Shares of eBay fell as much as 10.5% in premarket trading on Thursday morning after the company gave a lower-than-expected profit forecast for the important holiday shopping season.

The e-commerce giant reported solid numbers for the third quarter on Wednesday, with revenue up 9% as reported to $2.8 billion and gross merchandise volume rising 10% to $20.1 billion, topping the average analyst forecast of $19.4 billion, per Bloomberg.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.