ADVERTISEMENT

Johnson & Johnson was subpoenaed by the DOJ and the SEC over baby powder safety (JNJ)

A container of Johnson's baby powder.
  • Johnson & Johnson was subpoenaed by the Department of Justice and Securities and Exchange Commission to produce documents relating to the safety of the company's baby powder and other products containing talc.
  • The inquiries were disclosed in a filing with the SECon Wednesday.
  • Johnson & Johnson was cooperating with the inquiries and would produce documents in response, the filing said.
  • The inquiries were related to December press reports about product-liability lawsuits against the company, a Johnson & Johnson spokesperson told The Wall Street Journal, which also reported the company would "continue to defend itself in the product-liability litigation."
  • Johnson & Johnson shares were down 2.1% early Thursday.
  • Watch Johnson & Johnson trade live .

Shares of Johnson & Johnson fell 2.1% early Thursday after the company disclosed it had received preliminary inquiries and subpoenas from the Securities and Exchange Commission and Department of Justice to produce documents relating to the safety of the company's baby powder and other talc-containing products.

ADVERTISEMENT

The pharmaceutical company disclosed the inquiries in a filing with the SEC on Wednesday. Johnson & Johnson was cooperating with these inquiries and would produce documents in response, the filing said.

The inquiries were related to December press reports about product-liability lawsuits against the company, a Johnson & Johnson spokesperson told The Wall Street Journal , which also reported the company would "continue to defend itself in the product-liability litigation."

Shares plunged in mid-December after Reuters reported the company knew for decades that its baby powder contained asbestos.

ADVERTISEMENT

At the time, Reuters said it had reviewed documents, deposition, and trial testimony from at least 1971 to the early 2000s that showed powders and raw talc sometimes tested positive for small traces of asbestos.

Wall Street analysts covering the stock had largely viewed the its dramatic decline as an overreaction, but acknowledged the company could face headwinds from investors' concerns over the products.

Johnson & Johnson shares gained 7% this year through Wednesday.

Now read:

ADVERTISEMENT

Markets Insider

See Also:

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Sony’s creators convention redefines the creative landscape for content creators

Sony’s creators convention redefines the creative landscape for content creators

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

10 African countries with the lowest life expectancy according to the World Bank

10 African countries with the lowest life expectancy according to the World Bank

Kenyan women are more obese than their men - here’s why

Kenyan women are more obese than their men - here’s why

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

10 most dangerous African countries in 2024

10 most dangerous African countries in 2024

Russia’s nuclear influence expands further north of Africa

Russia’s nuclear influence expands further north of Africa

ADVERTISEMENT