Johnson & Johnson subpoenas, company confirmed in its annual report.
fell Thursday after the company confirmed it received subpoenas from the Securities and Exchange Commission and Department of Justice related to alleged asbestos contamination in its baby products.
Johnson & Johnson dominated headlines in late 2018 after a Reuters report suggested the company was aware its talc and powder products contain a small amount of asbestos for decades.
On Wednesday, the company confirmed in its annual report the subpoenas are related to its baby products and marks the first time the company disclosed it has received orders from federal agencies regarding its talc power products.
Why It’s Important
Johnson & Johnson said the federal inquiries are related to “news reports that included inaccurate statements and also withheld crucial information” investors are likely to be on edge. However, Reuters’ 2018 report sent shares of Johnson & Johnson tumbling lower and around $40 billion of shareholder value was erased in one day, so investors are likely to be on edge as the public relation crisis is returning to the spotlight.
Johnson & Johnson continues to be on the receiving end of 13,000 plaintiffs who allege the use of its talc products caused cancer.
The stock traded down 1.4 percent to $134.44 per share at time of publication.