In a significant development, Johnson & Johnson (NYSE:JNJ) has agreed to pay a hefty sum to resolve a multi-state investigation into its talc-based products.

What Happened: The pharmaceutical giant will pay $700 million to settle allegations that its talc products, including baby powder, led to cancer. The investigation was led by 42 U.S. states and Washington, D.C., Reuters reported on Wednesday.

The settlement addresses claims that Johnson & Johnson misrepresented the safety of its talc products, which were sold for over a century before being discontinued. Despite the settlement, the company has not admitted to any wrongdoing.

Florida Attorney General Ashley Moody hailed the settlement as a significant step forward for consumer product safety.

Although the settlement has been reached, Johnson & Johnson still faces a substantial number of talc-related lawsuits. As of March 31, approximately 61,490 people were suing the company over talc, primarily for ovarian cancer.

The company ceased the global sale of talc-based baby powder last year, replacing it with corn starch as the primary ingredient. Johnson & Johnson maintains that its products are asbestos-free.

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Why It Matters: This settlement comes on the heels of a jury ruling that to an Oregon woman who claims to have developed mesothelioma from using the company’s talc powder. The jury’s decision includes $60 million in compensatory damages and $200 million in punitive damages. Despite the verdict, J&J plans to appeal, with the company’s worldwide vice president of litigation, Erik Haas, stating that the decision is inconsistent with decades of independent scientific evaluations confirming talc’s safety.

Meanwhile, Johnson & Johnson has been making strides in its pharmaceutical business, including advancing its two bladder cancer studies and releasing the latest data. These developments have contributed to the company’s ongoing efforts to maintain its position as a leading pharmaceutical and consumer health products manufacturer.

Price Action: On Tuesday, Johnson & Johnson closed 0.25% lower at $146.76.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari