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|Johnson & Johnson Shareholder Class Action Lawsuit|
- Thursday, 23 September 2010 09:33
Johnson & Johnson shareholders have filed a class action lawsuit against the company claiming they were never told that a number of its facilities were failing to maintain good manufacturing practices, which led to eight separate recalls of its products. As a result of this “fraud and deceit,” the value of their stock in the company "declined significantly."
The shareholders claim in the class action lawsuit that during the class period of October 14, 2008 to July 21, 2010, Johnson & Johnson “repeatedly touted the success and revenue of OTC drug sales” and “failed to disclose that a number of manufacturing facilities were failing to maintain current good manufacturing practices.”
According to the class action lawsuit, Johnson & Johnson failed to conduct an adequate investigation and failed to notify the FDA that it received numerous consumer complaints about a musty odor coming from Tylenol products manufactured at its Las Piedras, Puerto Rico manufacturing facility. It also accuses Johnson & Johnson of failing to take corrective action when foreign materials and contamination were found in a manufacturing facility in Fort Washington, Pennsylvania, and ignored 46 separate complaints of foreign materials in products made at that facility. Johnson & Johnson is also accused of sending contractors out to stores to buy out Motrin products it learned had problems, rather than issuing a public recall.
“As a result of the blatant, systematic, and repeated failure of [Johnson & Johnson] to maintain proper manufacturing practices at their facilities, [Johnson & Johnson has] been forced to issue over eight separate recalls including dozens of products and hundreds of millions of individual packages.” As a result, the lawsuit says, the price of Johnson & Johnson stock has declined significantly, causing damage to class members.
The lawsuit is brought on behalf of all purchasers of Johnson & Johnson stock between October 14, 2008 and July 21, 2010 who suffered financial losses as a result of Johnson & Johnson's actions. It is seeking class certification and damages plus interest to class members.
A copy of the Johnson & Johnson Shareholder Class Action Lawsuit can be read here.
Last Updated on Thursday, 27 December 2012 10:09