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J&J Stocks Drop in Wake of DOJ, SEC Asbestos Investigations
Johnson & Johnson’s stock took a hit after news broke that the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are investigating the company. The investigation centers on whether or not J&J’s talcum-based baby powder product contains asbestos.
Both agencies are investigating J&J after the company lost several recent court verdicts to plaintiffs who alleged they developed cancer after using Johnson & Johnson’s Baby Powder. Shares dropped 1.3 percent after news of the investigations came out.
A St. Louis jury awarded a group of plaintiffs who nearly $5 billion in July 2018, and juries in other states have sided with plaintiffs as well.
In the St. Louis case, a group of 22 women sued J&J, saying the company’s baby powder caused them to develop ovarian cancer. California and New Jersey plaintiffs claimed the product led to their diagnosis of mesothelioma. Mesothelioma is an often-fatal form of cancer that attacks the mesothelium, a membrane that lines the lungs and other organs.
Patty Murray, a senator from Washington state, serves on the Senate Health Committee. Ms. Murray wants information on whether or not J&J was aware that its baby powder contained asbestos. Previous news reports stated that the company knew for decades that this was the case, yet it failed to disclose that information.
When those reports came out, J&J’s market value dropped approximately $40 billion and its stock fell 17 percent.
Murray said she was concerned about the questions those reports raised regarding J&J’s efforts to mislead consumers as well as regulators about the safety of its baby powder.
Talk to Baron & Budd
Baron & Budd may be able to help if you or a loved one used Johnson & Johnson’s Baby Powder and later developed severe health issues. Please contact us online or call (866) 347-7765 to learn more.