Johnson & Johnson subpoenaed by DOJ, SEC over baby powder safety
Johnson & Johnson's baby powder drama is far from over.
The pharmaceutical giant disclosed in a SEC filing Wednesday that it has received subpoenas from the Department of Justice and -- the Securities and Exchange Commission itself-- to produce documents relating to the safety of its iconic baby powder that has been the center several lawsuits.
In the filing, J&J said it was cooperating with the agencies and would produce the documents in response.
The subpoenas come three months after an explosive Reuters report alleging the company knew about the presence of cancer-causing asbestos in its baby powder.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 208.31 | -2.02 | -0.96% |
The report alleged that J&J didn't tell the Food and Drug Adminstration about at least three tests by three different labs from 1972 to 19875 that found asbestos in its talcum powder, in one case at levels reported as "rather high," according to internal documents from the company. J&J immediately released a statement following the article, saying it was "one-sided, false and inflammatory."
Shares plunged in mid-December following the report forcing the company's chairman and CEO Alex Gorsky to release a national ad campaign reiterating to the public that its baby powders are completely safe despite investigative reports from both Reuters and The New York Times.
In the video, he cites tens of thousands of studies that have proven talc does not cause cancer or asbestos-related disease. Gorsky also referenced that the U.S. Food and Drug Administration, (FDA) and other global regulators, have continually proven the product to be asbestos-free.
What's more, last December, J&J lost its motion to reverse a jury verdict that awarded $4.14 billion in punitive damages and $550 million in compensatory damages to a group of women that cited the cause of their ovarian cancer was from its baby powder and other talc products.
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The verdict was upheld by Judge Rex Burlison of the 22nd Circuit Court in Missouri. The plaintiffs included 22 women and their families and it is one of the largest personal injury awards on record.