Johnson & Johnson shares are down over 5% after Bloomberg reports that, according to people with knowledge of the matter, the U.S. Justice Department is pursuing a criminal investigation into whether Johnson & Johnson lied to the public about the possible cancer risks of its talcum powder…
Shareholders are selling first, thinking later…
Whilebaby powder only accounts for a small fraction of J&J revenues, it is a core brand and the criminal probe, which hasn’t been reported previously, coincides with a regulatory investigation and civil claims by thousands of cancer patients that J&J’s Baby Powder talc was responsible for their illness.
Now, a grand jury in Washington is examining documents related to what company officials knew about any carcinogens in their products, the people said.
via ZeroHedge News https://ift.tt/2xIxM49 Tyler Durden