On Monday, December 22, 2025, a Baltimore jury awarded Cherie Craft a total of $1.56 billion in damages for peritoneal mesothelioma allegedly caused by asbestos in Johnson & Johnson’s talc‑based baby powder. The award comprised $59.84 million in compensatory damages and punitive damages of $1 billion against J&J and an additional $500 million against its subsidiary Pecos River Talc, with the spinoff Kenvue also found liable.
The verdict is the largest single‑plaintiff award against J&J in the United States and adds to the company’s already massive talc exposure. In 2024, J&J set aside $11 billion in reserves for talc litigation, a $2.7 billion charge that reflected the cumulative impact of prior verdicts and settlement proposals. The new judgment will further inflate those reserves and increase projected litigation costs, tightening the company’s balance sheet and potentially affecting capital allocation decisions for other business units.
Management has responded by announcing an immediate appeal, with Erik Haas, J&J’s worldwide vice president of litigation, describing the verdict as “egregious” and “patently unconstitutional.” Haas argued that the trial court’s rulings were flawed and that the punitive damages awarded were inconsistent with the company’s historical outcomes in similar cases. The appeal will be heard in federal court and could set a precedent that influences the outcome of other talc lawsuits nationwide.
J&J’s talc litigation has a long history, dating back to 2009, and the company has repeatedly denied that its products contained asbestos. The verdict comes after J&J stopped selling talc‑based baby powder in the U.S. and Canada in May 2020 and globally in 2023, shifting to cornstarch‑based alternatives. The continued legal exposure underscores the challenges the company faces in managing legacy liabilities while maintaining consumer trust in its consumer health portfolio.
The judgment highlights the broader risk profile of J&J’s consumer health division and may prompt investors to reassess the company’s long‑term risk exposure. While the verdict does not immediately alter the company’s core product lines, it signals that the legal and reputational costs of talc litigation will remain a significant factor in J&J’s strategic planning and financial reporting for years to come.
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