Johnson & Johnson (NYSE:JNJ) ended the week poorly as the company’s stock was negatively impacted by an investigation surrounding the company’s statements on its baby powder.
The U.S. Department of Justice has started a criminal probe that is examining whether or not the business lied about the possible cancer risks caused by its talcum powder. A grand jury in Washington is closely looking over the documents that contain information regarding whether or not the business knew about any carcinogens in their products, according to a Bloomberg report, which cited sources familiar with the matter.
J&J responded to the report by saying that the suggestion that a new development in the matter has emerged is straight up untrue. The business revealed in February that it had received subpoenas surrounding the care, with a spokesperson stating that the business is “fully cooperating with the DOJ investigation.”
The consumer products business is facing more than 13,000 lawsuits linked with its talc. J&J has refuted allegations that the product causes cancer, adding that there have been plenty of studies and tests from regulators across the globe that reveal the talc is safe and free of asbestos.
JNJ stock is down about 4.4% on Friday following the news. Shares are currently selling at around $13.90 apiece as of late afternoon today.