|
 J&J faces more than 19,000 lawsuits from consumers and their
survivors claiming its talc products caused cancer due to
contamination with asbestos, a known carcinogen. Many are pending
before a U.S. district judge in New Jersey.
"I wish my mother could be here to see this day," said Crystal
Deckard, whose mother Darlene Coker alleged Baby Powder caused her
mesothelioma. She dropped the suit filed in 1999 after losing her
fight to compel J&J to divulge internal records. Coker died of
mesothelioma in 2009.
In its statement, J&J said it "remains steadfastly confident in the
safety of talc-based Johnson's Baby Powder," citing "decades of
scientific studies."
J&J has faced intense scrutiny of the safety of its baby powder
following an investigative report by Reuters in 2018 that found the
company knew for decades that asbestos lurked in its talc.
Internal company records, trial testimony and other evidence show
that from at least 1971 to the early 2000s, the company's raw talc
and finished powders sometimes tested positive for small amounts of
asbestos.
(To read the Reuters special report click,
https://www.reuters.com/
investigates/special-report/johnsonandjohnson-cancer/ )
The Reuters article prompted a stock selloff that erased about $40
billion from J&J’s market value in one day and created a public
relations crisis as the blue-chip healthcare conglomerate faced
widespread questions about the possible health effects of one of its
most iconic products.
J&J has also been the target of a federal criminal investigation
into how forthright it has been about its talc products’ safety, an
investigation by 41 states into its baby powder sales, which it
disclosed in April, and an investigation into health risks of
asbestos in talc-containing consumer products by a Congressional
subcommittee.
U.S. Representative Raja Krishnamoorthi, who led the Congressional
inquiry, described J&J's decision to stop selling talc baby powder
as "a major victory for public health", adding: "My Subcommittee’s
14-month investigation revealed that Johnson & Johnson knew for
decades that its product contains asbestos."
In response to evidence of asbestos contamination presented in media
reports, in the court room and on Capitol Hill, J&J has repeatedly
said its talc products are safe, and do not cause cancer.
Apart from the baby powder controversy, the company revered by
millions of consumers and one of the most trusted brands in America,
more recently has faced a series of legal and reputational
challenges.
J&J has said it has been named as a defendant, along with other
drugmakers, in more than 2,900 lawsuits alleging the companies
improperly promoted addictive opioids.
In August, an Oklahoma judge rendered the first verdict in that
litigation, ordering J&J to pay $572.1 million to the state for its
part in fueling an opioid epidemic by deceptively marketing
addictive painkillers.
J&J is appealing the Oklahoma judge's ruling and has denied it
caused the opioid crisis.
Johnson & Johnson on Tuesday said it had stopped shipping talc baby
powder when the COVID-19 crisis led to limits on shopping and
manufacturing, and that now it would wind down North American sales.
[to top of second column] |
"Demand for talc-based Johnson’s Baby Powder in North America has
been declining due in large part to changes in consumer habits and
fueled by misinformation around the safety of the product and a
constant barrage of litigation advertising," it said in a statement.
Sold continuously since 1894, Johnson’s Baby Powder now accounts for
only about 0.5% of its U.S. consumer health business, the company
said. But it remains a symbol of the company's family-friendly
image.
An internal J&J marketing presentation from 1999 refers to the baby
products division, with Baby Powder at the core, as J&J’s “#1
Asset,” grounded in “deep, personal trust" and a 2003 internal memo
described it as a "sacred cow," Reuters reported.
Christie Nordhielm, a professor of marketing at Georgetown, said it
appears J&J made its decision to withdraw from the market while
consumers are preoccupied with the pandemic. "It's a nice time to
quietly do it," she said, adding "it will minimize the reputational
hit."
Shares of J&J were unchanged in after-hours trading following the
disclosure.
"We will continue to vigorously defend the product, its safety, and
the unfounded allegations against it and the Company in the
courtroom," Johnson & Johnson said. "All verdicts against the
company that have been through the appeals process have been
overturned."
Krystal Kim, one of 22 women with ovarian cancer whose case in St.
Louis resulted in a 2018 jury verdict of $4.69 billion against J&J,
said the decision was "a step in the right direction." J&J has
appealed that verdict.
Nevertheless, J&J's legal challenges likely will continue, some
lawyers said. In April, a New Jersey judge ruled that thousands of
plaintiffs who allege J&J's talc products caused cancer can go
forward with their claims, but face limits on what expert testimony
would be allowed in trials.
"Just taking it off the shelf today doesn’t end the litigation by a
long shot," said Loyola Law Professor Adam Zimmerman.
Asbestos is known to cause cancer that emerges decades after
exposure. Cases involving asbestos-containing products removed from
the marketplace long ago "continue to be litigated very actively to
this day," Zimmerman said.
Many of the lawsuits allege Baby Powder caused plaintiffs'
mesothelioma, an incurable cancer of the lining of the lungs and
other organs commonly caused by asbestos.
"Just as J&J vows to continue fighting vigorously in the courts, we
look forward to meeting them there as we continue to pursue justice
for our clients," said Chris Placitella, one of the lead lawyers
representing plaintiffs in the cases consolidated in a New Jersey
federal court.
J&J said it will continue to sell cornstarch-based baby powder in
North America, and will sell both its talc and cornstarch-based
products in other markets around the world.
(Reporting by Carl O'Donnell in New York and Lisa Girion in Los
Angeles; Editing by Peter Henderson, Bill Berkrot, Rosalba O'Brien
and Lincoln Feast.)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |
