Industry giant Johnson & Johnson has set aside funds worth $4 billion to tackle the company’s legal battles, an official government filing shows.
According to a report on the United States Securities and Exchange Commission (SEC), Johnson & Johnson has included in its company filing report that it allocated $4 billion last 2020 to tackle the company’s baby powder cancer litigation expenses posed by lawsuits filed against them.
This is a significant increase from the $400 million funds that the company had allocated for the same purpose during the previous year.
According to SEC officials, these findings can result in the company significant monetary losses, damage to its public reputation, etc., that would negatively impact its business operations.
This comes after the company has been continuously bombarded with hoards after hoards of class action lawsuits and complaints around the country for its baby powder products.
As of early this year, the company has faced and is continuing to maneuver through more than 25,000 lawsuits in the country alone.
This number is poised to increase as more and more reports surface online, questioning and raising safety concerns about its baby powder products.
Johnson & Johnson’s baby powder legal troubles stem from decades ago and are continuing to haunt the company up to this very day.
Consumers first accused the company of being responsible for countless cancer diagnoses because of talc in their baby powder products.
Though there were no findings that would directly correlate talc with cancer, complainants then turned their ire to the fact that Johnson & Johnson’s baby powder products may be contaminated with asbestos.
Unlike talc, asbestos is a chemical known to endanger one’s health.
It can cause reduced respiratory function and even death after prolonged exposure.
Complaints contend that because of how talc and asbestos are closely mined from each other from the Earth, there are chances that the baby powder might have ended up being accidentally contaminated with asbestos.
Reports from Reuters and the Food and Drug Administration have found out that the company’s baby powder products indeed contained trace amounts of asbestos that were caused by the processing and manufacturing phase the product undergoes.
This led to louder public outcry causing the company to cease distributing talc-based baby powder products in the United States and Canada starting May last year.
Nevertheless, this did not quell the public’s anger, and the company is expected to face countless more class actions in the near future.
About the company:
Founded in 1886, Johnson & Johnson is an American multinational corporation that focuses on developing an array of products ranging from consumer-packed goods to pharmaceuticals and medical equipment.
Ranked 37th on the 2018 edition of the Fortune 500 list, the company is a publicly-traded business entity with recorded revenue of $82.6 billion last year.
The company is headed by Alex Gorsky and is headquartered in New Brunswick, New Jersey.
Editor’s Note on Johnson & Johnson Put $4 Billion In Legal Expenses:
This article is aimed to report on the news that American giant Johnson & Johnson spent huge amounts of money in order to tackle its legal battles in court relating to its baby powder products concerns.
What are your thoughts on this piece? Please share your thoughts by clicking the ‘Contact Us’ button below. We’d love to hear back from you!
Suggested Article: Talcum Powder Class Lawsuit Investigation.