Johnson & Johnson share price falls as baby powder scandal intensifies
Johnson & Johnson’s share price fell today after it was revealed the Securities and Exchange Commission (SEC) are investigating the company over allegations over a possible asbestos contamination in its baby powders.
The company’s share price fell 1.4 per cent after it revealed that it had received subpoenas from the US Justice Department and SEC regarding its talc products in its annual report on Wednesday.
In New York shares are currently trading at $134.99, down one per cent.
The probes come in response to allegations in December that Johnson & Johnson knew that small amounts of asbestos, a known carcinogen, had been occasionally found in its talc and powder products.
The firm contests the reports and said it was cooperating with the federal agencies’ investigation, adding that “decades of independent tests by regulators and the world’s leading labs prove Johnson & Johnson’s baby powder is safe and asbestos-free, and does not cause cancer.”
The company is also facing separate lawsuits involving more than 13,000 plaintiffs who allege that the company’s talc products, including Baby Powder, caused cancer.
Investors have also sued the company over its failure to disclose information on the issue.
Shares in the consumer health company are around 8.6 per cent lower than what they were trading at in December before the asbestos allegations were first reported.