Daily Management Review

Johnson & Johnson paper collapse amid investigation of asbestos content in J&J products


Quotes of the company fell by 4% after appearance of information about a criminal investigation in the United States.

Open Grid Scheduler via flickr
Open Grid Scheduler via flickr
The US Department of Justice is conducting a criminal investigation into Johnson & Johnson Corporation’s possible concealment of risks of cancer when using talcum powder, Bloomberg reported.

According to the agency, it is about a new investigation. A grand jury in Washington is examining documents containing testimony from Johnson & Johnson about their awareness of the possible levels of carcinogenic substances in the company's products.

After the publication of this information, the company's shares came under serious pressure and, as a result of Friday's trading on the New York Stock Exchange, fell by 4%, showing a “worse than the market” dynamic among large companies in the consumer sector.

Bloomberg also noted that this is not the first example of a collapse of Johnson & Johnson quotes over the past few years in connection with reports of a possible asbestos content in the company's products.

source: bloomberg.com