2019 is the worst year for Johnson & Johnson (NYSE:JNJ). The company is ordered to pay $8 billion in punitive damages by the jury after it failed to warn the young boy over the side effects of an anti-psychoactive drug – Risperdal. According to the filing, Johnson & Johnson has pushed the doctors to prescribe Risperdal. Johnson & Johnson has paid a less amount given the severe side effects of the drug on health.
A 13-year-old young boy has grown breasts after using the anti-psychoactive drug. He sued the company for its failure to warn about the side effects of the drug. A similar symptom is observed in a 26-year-old man who used the drug.
Over 100,000 lawsuits
John & Johnson is facing more than 100,000 lawsuits over its baby powder, medical devices, hips, and drugs. According to the analysts, it might have to pay litigation costs of $20 billion. The company suffered court losses to the tune of billions of dollars on settlements related to damage claims of artificial hips, opioid pain killers, and baby powder. Several people sue the company on injuries caused because of the use of products that include drug Invokana (a diabetes drug), and vaginal mesh devices.
Shares down 12% from a peak
Shares of Johnson & Johnson recovered to $130.66 on October 14, 2019, after hitting a low of $128.78 on October 9, 2019. They are down by 12% from the peak over worries of litigation costs. The company already accounted for the losses of $20 billion.
According to a law professor at the University of Richmond, Carl Tobias, the investors are tired, and the cries of the company are far from over. A professor (business ethics) at Santa Clara University in California, Michael Santoro, said Johnson & Johnson is at the forefront a few years ago when it comes to ethics. Drugmakers are facing lawsuits and no exception for Johnson & Johnson.
The company received over 15,000 lawsuits from women for its talc product. According to the complaint, talc product causes cancer in long term use. Johnson & Johnson said the company evaluates each claim carefully and decides when to fight or when to settle. It adopts a case by case approach.