JNJ stock was falling hard Friday on news that the company allegedly knew about asbestos in baby powder.
This information comes in a special report looking over confidential documents that have been revealed by Johnson & Johnson (NYSE:JNJ) in ongoing lawsuits. The documents make mention of asbestos and similar material being found in its baby powder.
The revelation that the company may have known about asbestos in its baby powder was hitting its stock today. The documents include tests from the company’s own internal teams, as well as from outside labs, both of which did find possible evidence of asbestos in its talc powder.
Johnson & Johnson is arguing that its talc powder does not contain any asbestos. However, the lawsuits against the company have to do with possible exposure to asbestos through its products as far back as the 1960s.
The main battle between Johnson & Johnson and lawyers has to do with the effects that asbestos can have on individuals. This includes being behind mesothelioma and ovarian cancer. If the company’s baby powder did previously contain asbestos, this could link it to these health problems, reports Reuters.
This is far from the first time that Johnson & Johnson has been in the news over claims of asbestos in its talc powder. The company has mostly been successful in fending off lawsuits over these issues. However, this new evidence could hurt its chances to win future court cases, which isn’t good for JNJ stock.
JNJ stock was down 9% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.