A US federal court has granted permission for certain Johnson & Johnson (J&J; NYSE: JNJ) shareholders to initiate a class action lawsuit against the company for allegedly concealing the presence of oncogenic asbestos in its talc products. The decision, which impacts stock price events between 2017 and 2018, covers stockholders from February 22, 2013, to December 13, 2018. The court rejected J&J’s bid to reduce the class period, upholding the claim that the events in question did not refute the company’s assertions about the safety of its talc products.
J&J cited a 2018 ruling that found its products contributed to ovarian cancer in 22 plaintiffs and a media report revealing internal company documents. However, the company argued that these events did not demonstrate that J&J was aware of any risks, as the information was confined to the opinions of jurors and public documents.
The company has attempted to distance itself from the asbestos scandal by filing for bankruptcy for a subsidiary set up to manage talc claims. However, two such filings have been dismissed by courts to date.- Flcube.com
