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J&J Stock Dives As Feds Reportedly Seek Criminal Probe Into Talc Powders
Johnson & Johnson stock tumbled Friday on reports the Department of Justice is seeking a criminal investigation into allegations [b]J&J[/b] (JNJ) lied about possible cancer risks of its talc powders.
In midday trading on the stock market today, J&J stock skidded 4.5%, near 133.90, in hefty volume.
Johnson & Johnson stock hit its lowest point since early June.
The criminal investigation was first reported by Bloomberg early Friday. The Justice Department
itself hasn't confirmed the investigation. It would run alongside a probefrom the Securities and
Exchange Commission, and lawsuits from consumers who say J&J talc powder is responsible for their cancer.
Johnson & Johnson representatives didn't immediately return a request for comment from Investor's Business Daily.
Feds Dig Into Allegations Of Cancer Risk
In December, a report from Reuters alleged J&J had known its talc powders contained cancer-causing
asbestos for nearly 50 years. The company has called the report "an absurd conspiracy theory,"
but it has weighed on Johnson & Johnson stock since.
Two months later, the Justice Department, SEC and U.S. Sen. Patty Murray, D-Wash.,
requested more information regarding the talc powders.
Now, the Justice Department is seeking a criminal probe, according to unnamed sources cited by Bloomberg.
A grand jury is reportedly examining documents outlining what the company knew about the cancer risks
of their talc powders.
Talc Powders Weigh On Johnson & Johnson Stock
Talc powders generate a small portion of the company's massive sales. In the first quarter, all baby care
products brought in $394 million in sales, accounting for less than 2% of more than $20 billion in sales.
Still, it's a notable household brand for the Dow Jones component.
Johnson & Johnson stock tumbled Friday on reports the Department of Justice is seeking a criminal investigation into allegations [b]J&J[/b] (JNJ) lied about possible cancer risks of its talc powders.
In midday trading on the stock market today, J&J stock skidded 4.5%, near 133.90, in hefty volume.
Johnson & Johnson stock hit its lowest point since early June.
The criminal investigation was first reported by Bloomberg early Friday. The Justice Department
itself hasn't confirmed the investigation. It would run alongside a probefrom the Securities and
Exchange Commission, and lawsuits from consumers who say J&J talc powder is responsible for their cancer.
Johnson & Johnson representatives didn't immediately return a request for comment from Investor's Business Daily.
Feds Dig Into Allegations Of Cancer Risk
In December, a report from Reuters alleged J&J had known its talc powders contained cancer-causing
asbestos for nearly 50 years. The company has called the report "an absurd conspiracy theory,"
but it has weighed on Johnson & Johnson stock since.
Two months later, the Justice Department, SEC and U.S. Sen. Patty Murray, D-Wash.,
requested more information regarding the talc powders.
Now, the Justice Department is seeking a criminal probe, according to unnamed sources cited by Bloomberg.
A grand jury is reportedly examining documents outlining what the company knew about the cancer risks
of their talc powders.
Talc Powders Weigh On Johnson & Johnson Stock
Talc powders generate a small portion of the company's massive sales. In the first quarter, all baby care
products brought in $394 million in sales, accounting for less than 2% of more than $20 billion in sales.
Still, it's a notable household brand for the Dow Jones component.
