J&J Falls Amid Reports Of Criminal Probe Into Talcum Powder
Zacks Investment Research | Jul 14, 2019 09:05PM ET
Shares of Johnson & Johnson (NYSE:JNJ) fell more than 4% on Friday amid reports that the drug giant is facing criminal investigation by the U.S. Department of Justice related to its talc-based products.
Bloomberg was the first to report the federal probe into whether J&J lied to the public about the possible cancer risks of its talc-based products and the company knew more details than it let on. According to the Bloomberg report, a grand jury in Washington is examining documents related to what J&J officials knew about the cancer risks.
Please note that in its SEC filing in February, J&J had stated that it received subpoenas to produce documents regarding the ongoing baby powder litigation from the Department of Justice and the SEC. Back then, the company had said that it was co-operating with the government agency.
J&J already faces more than 14,000 lawsuits for its talc-based products, primarily its baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer.
J&J’s stock has risen 4% this year so far against a decrease of 1.5% recorded by the Zacks Investment Research
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