Johnson & Johnson Under Fire After Claims of Asbestos in Baby Powder
Johnson & Johnson shares dropped on Friday after it came public that the company knew for decades that its baby powder sometimes contained the known carcinogen asbestos.
Reuters reported on Friday that Johnson & Johnson (NYSE: JNJ) knew for decades that its baby powder sometimes contained the known carcinogen asbestos.
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According to the report, the pharmaceutical and health care products provider knew that its raw talc and finished powder tested positive for traces of asbestos. Reuters cited court documents linked to a case in Missouri, where $4.7 billion was awarded to 22 women who claimed that these products caused them to develop ovarian cancer.
Separately, Reuters alleges that the company attempted to influence U.S. regulators to reduce the amount of asbestos that could legally remain in some of its cosmetic talc products.
Ernie Knewitz, Johnson & Johnson’s vice president of global media relations, told Reuters in an email:
Plaintiffs’ attorneys out for personal financial gain are distorting historical documents and intentionally creating confusion in the courtroom and in the media. This is all a calculated attempt to distract from the fact that thousands of independent tests prove our talc does not contain asbestos or cause cancer. Any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false.
Shares of Johnson & Johnson were last seen down about 9% at $134.44 on Friday, in a 52-week range of $118.62 to $148.99. The consensus analyst price target is $148.56.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
