Johnson & Johnson Resolves 2 Major Talc Cases As Legal Battles Continue
Portfolio Pulse from Vandana Singh
Johnson & Johnson (NYSE:JNJ) has settled two major talc-related lawsuits, following an appeals court's decision to overturn a $223.8 million verdict against the company. J&J faces over 50,000 lawsuits alleging that its talc products, which it claims are safe, contain asbestos. The settlements are part of a broader agreement with the law firm representing many talc cases. The terms of the settlements are not disclosed. J&J previously attempted to transfer talc claims to bankruptcy court, which was denied. JNJ shares dropped 0.87% in premarket trading.
November 17, 2023 | 2:25 pm
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NEGATIVE IMPACT
Johnson & Johnson has settled two talc-related lawsuits and is dealing with over 50,000 similar cases. The company maintains the safety of its talc products and has shifted to cornstarch-based powders. JNJ shares fell 0.87% in premarket trading.
The settlement of the lawsuits may relieve some legal pressure on JNJ, but the sheer volume of over 50,000 pending cases and the history of mixed trial outcomes suggest ongoing legal risks. The premarket share price drop indicates a negative short-term investor reaction to the news.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100