Johnson & Johnson (J&J) has an image problem. Consumer goodwill ratings for the company have plummeted to new lows lately. According to the website BrandIndex, which tracks brand perception among the public, J&J’s ongoing legal troubles are the source of the problem – with more lawsuits still to come.
The public’s perception of J&J has dropped two-thirds since February 8, 2016. On that date, J&J announced the layoff of 127 workers due to relocating a distribution center to another state. From then on, J&J’s public image has been the punching bag for lawsuit after lawsuit.
J&J Faces More Baby Powder Lawsuits
For starters, juries have started awarding punitive financial awards to plaintiffs who have sued J&J, claiming its talcum powder products caused their cancer. Both Johnson’s Baby Powder and Shower to Shower brands contain talcum powder. Although the FDA hasn’t officially linked talc with cancer, plaintiffs have successfully persuaded jurors that it caused their ovarian cancers.
- In February, a jury awarded $72 million in a posthumous civil suit where the plaintiff had died of ovarian cancer allegedly caused by J&J’s talc products.
- In May, a woman was awarded $55 million in damages, $50 million of which are punitive, in another Johnson’s Baby Powder lawsuit.
- A class-action lawsuit in Canada is being brought against J&J for its talcum products too. The suit alleges that J&J was aware all along of the links between talc and cancer.
Transvaginal Mesh Lawsuits Also Likely for J&J
Over 44,000 lawsuits are pending over J&J’s transvaginal mesh device, a pelvic sling called Gynemesh, made by J&J subsidiary Ethicon. The mesh is designed to treat urinary incontinence and pelvic organ prolapse.
- In May, the state of California sued J&J over the way the mesh devices were marketed, claiming that side effects and risks were not communicated to patients.
- Washington state and 44 other states followed on the heels of California, joining into a multi-state lawsuit against J&J related to the transvaginal mesh device.
Other than a recent investment in cancer research and development, J&J’s next play is unclear. Damage control should be a high priority for J&J, though…
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