June 13, 2025

Johnson & Johnson has capitulated to mounting legal pressure, agreeing to pay a staggering $8.9 billion—over four times its previous offer—to settle tens of thousands of lawsuits claiming its once-trusted Baby Powder caused cancer. This massive payout follows a critical court ruling that struck down the company’s notorious “Texas two-step” scheme, a legal gymnastics act designed to dodge accountability by shifting liabilities to a shell subsidiary and declaring bankruptcy. The collapse of this strategy marks a significant victory for those seeking justice, while also raising serious concerns about corporate attempts to exploit the legal system to evade responsibility.

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