A California jury has cleared US pharmaceutical giant Johnson & Johnson (J&J) of liability in a case involving a woman who alleged that the company’s talc-based products contain asbestos and caused her cancer. Johnson & Johnson is an American multinational medical device…
A California jury has cleared US pharmaceutical giant Johnson & Johnson (J&J) of liability in a case involving a woman who alleged that the company’s talc-based products contain asbestos and caused her cancer.
Background
Johnson & Johnson is an American multinational medical device, pharmaceutical and consumer packaged goods manufacturing company founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 37 on the 2018 Fortune 500 list of the largest United States corporations by total revenue.
Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries. Johnson & Johnson had worldwide sales of $70.1 billion during the calendar year 2015.
Johnson & Johnson’s brands include numerous household names of medications and first aid supplies. Among its well-known consumer products is the Band-Aid Brand line of bandages, Tylenol medications, Johnson’s baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
By March 2017, over 1,000 U.S. women had sued J&J for covering up the possible cancer risk from its Baby Powder product; the company says that 70 per cent of its Baby Powder is used by adults. In August 2018, Johnson & Johnson said that it removed several chemicals from baby powder products and re-engineered them to be safer for children.
Analysis
After a seven-week long trial, the jury in Humboldt County Superior Court rejected claims by the woman who said her mesothelioma (a tissue cancer closely linked to asbestos exposure) was caused by the company’s talc products, including Johnson’s Baby Powder.
J&J denied the allegations, saying that decades of scientific testing and regulatory approvals have shown its talc to be safe and asbestos-free. The company said it was pleased with the jury’s decision.
“While we deeply sympathize with anyone suffering from any form of cancer, the science and facts show that her disease was not caused by her use of our talcum-based products,” the company said.
The company is battling some 11,700 US lawsuits, involving its signature baby powder, according to an October regulatory filing. Recent filings in the New Jersey federal court, where most of the cases are consolidated, showed that more than 9,700 of those cases involve claims over ovarian cancer.
The rest of the plaintiffs allege asbestos in the company’s product caused them to develop mesothelioma. They also allege that J&J knew of asbestos fibres in its cosmetic talc and concealed risks associated with the products.
J&J has been fighting talc cancer lawsuits for several years. So far, it has been cleared of liability in three mesothelioma cases while having lost two cases in New Jersey and California, with juries awarding a total of $142 million in damages.
In July, a Missouri jury awarded $4.7 billion in total damages to 22 women and their families after they claimed asbestos in J&J’s talcum powder contributed to their ovarian cancer. The company still rejects any connection between cancer and its talc-based products.
Assessment
Our assessment is that this case represents a change in the social responsibility of multinational corporations and their commitment to consumer safety. Although Johnson and Johnson won this case, they were forced to make necessary changes to their products, which further improves consumer safety. We believe that multinational corporations must adhere to basic safety guidelines for the sake of consumer safety and that the legal system is a good way to restore public faith in a faltering company.
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