Shares dropped 10 percent in the wake of Reuters’ analysis.
A report today released by Reuters suggests that Johnson & Johnson knew about trace amounts of asbestos in its baby powder product as early as 1971. In the wake of this report, J&J shares dropped 10 percent since this morning.
Reuters analyzed company memos, confidential documents and other internal documents and found that from 1971 up until the early 2000s, the company was well aware that some of its raw talc and finished powder products contained trace amounts of asbestos, but the company never disclosed that information to consumers. According to Reuters’ report, “The company’s raw talc and finished powders sometimes tested positive for small amounts of asbestos, and that company executives, mine managers, scientists, doctors and lawyers fretted over the problem and how to address it while failing to disclose it to regulators or the public.”
Johnson & Johnson did not immediately respond to Adweek’s request for comment.
