According to a Reuters report, a Los Angeles Jury has ordered the company to pay $16 million in compensatory damages and $950 million in punitive damages.
Johnson & Johnson (JNJ) has reportedly been ordered to pay $966 million to the family of a woman who died from a rare form of cancer called mesothelioma after a jury found the company liable.
Mae Moore died in 2021, and her family subsequently sued the company, claiming that Johnson & Johnson’s talc baby powder products contained asbestos fibers that caused her rare cancer.
Reuters reported that a Los Angeles Jury has ordered the company to pay $16 million in compensatory damages and $950 million in punitive damages. The verdict could be reduced on appeal, the report added. J&J stopped selling talc-based baby powder in the U.S. in 2020.
JNJ is reportedly planning to appeal immediately, calling the verdict “egregious and unconstitutional.” Shares of the company dropped 0.3% at the time of writing. On Stocktwits, retail sentiment around JNJ stock fell from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.
In April, a Texas judge dismissed J&J’s attempt to settle class action lawsuits related to claims of talcum powder causing ovarian cancer via a $10 billion Chapter 11 filing. The company had aimed to settle claims against its subsidiary, Red River Talc, through the bankruptcy process. It marked the company’s third attempt to resolve talc-related litigation through bankruptcy proceedings.
Separately, Citi raised the price target on JNJ to $213 from $200 on Tuesday, while maintaining a ‘Buy’ rating on the shares.
JNJ stock is up by 30% this year and by about 18% over the past 12 months.
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