Johnson & Johnson stock falls after asbestos found in baby powder

The bad news keeps coming for Johnson <><><><>& Johnson: The company on Friday announced a a href=”http://www.cnn.com/2019/10/18/health/johnson-and-johnson-baby-powder-recall-bn-trnd/index.html” target=”_blank”voluntary recall/a of its popular baby powder after some bottles were found to contain small amounts of asbestos./ppShares of JJ fell 6%, making it the second worst-performing stock in the Dow Jones Industrial Average. The drop in J<><><><>J, along with a slide in Boeing, dragged down the a href=”http://www.cnn.com/2019/10/18/investing/dow-stock-market-today/index.html” target=”_blank”broader market Friday/a./ppJ<><>J’s stock is now down slightly in 2019. The company, along with other health care stocks, has lagged the broader market due to a series of legal concerns./ppBut J<><><><><><>J has arguably the greatest risk of all the top Big Pharma firms./ppThe company already has been dealing with lawsuits about whether it knew of asbestos in talcum powder. Shares a href=”https://www.cnn.com/2018/12/14/business/johnson-and-johnson-stock-baby-powder-asbestos/index.html” target=”_blank”plummeted more than 10% in mid-December/a — their worst one-day drop since 2002 — after a href=”https://www.reuters.com/investigates/special-report/johnsonandjohnson-cancer/” target=”_blank”Reuters reported/a that J<><>J knew about an asbestos problem for decades./ppSome women have alleged that their ovarian cancer was caused by exposure to J<><>J products with asbestos. Prolonged exposure to asbestos has also been linked to cases of mesothelioma and lung cancer, according to some medical studies./ppJ<><><><><><>J a href=”https://johnsonandjohnson.gcs-web.com/static-files/bc5a49b0-6485-4da2-a6ff-185c558cb2c0″ target=”_blank”said in a statement Friday/a that it “has a rigorous testing standard in place to ensure its cosmetic talc is safe and years of testing, including the FDA’s own testing on prior occasions — and as recently as last month — found no asbestos.”/pp”Thousands of tests over the past 40 years repeatedly confirm that our consumer talc products do not contain asbestos,” the company added./ppStill, asbestos allegations aren’t the only legal headache for J<><><>J./ppEarlier this month, a Pennsylvania jury also ruled that a href=”https://www.cnn.com/2019/10/09/uk/johnson-and-johnson-male-breast-growth-damages/index.html” target=”_blank”J<><><>J must pay $8 billion in punitive damages/a following a man’s claim that the company didn’t warn young men that they could grow breasts after using the antipsychotic drug Risperdal./ppJ<><><><><><>J is dealing with a series of other legal problems, most notably about the company’s role in the a href=”http://www.cnn.com/2019/03/12/health/oklahoma-opioid-trial-johnson-and-johnson-kingpin/index.html” target=”_blank”opioid addiction crisis/a. That could cost the company a href=”http://www.cnn.com/2019/10/17/health/opioid-settlement/index.html” target=”_blank”billions of dollars in settlement costs/a./ppJ<><>J says in its earnings releases — including its third-quarter results reported earlier this month — that it will not provide earnings guidance “because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings.”/ppOhio Attorney General Dave Yostalso announced Thursday that J<><><><><>J agreed to a href=”https://www.ohioattorneygeneral.gov/Media/News-Releases/October-2019/AG-Yost-Announces-$117-Million-Multistate-Settleme” target=”_blank”pay nearly $117 million/a in a multistate settlement to resolve allegations about deceptive marketing of transvaginal surgical mesh devices that are used to treat bladder problems. The company was sued by women who allege they were a href=”http://www.cnn.com/2018/03/28/health/pelvic-mesh-implant-australia-senate-intl/index.html” target=”_blank”injured by the devices/a./p