Bloomberg reports that a group of Johnson & Johnson shareholders is suing the company, accusing the company’s board “of ignoring ‘red flags’ foreshadowing product recalls and government probes of manufacturing defects and marketing practices.
“The shareholders asked a judge to find that directors and top executives mismanaged J&J and order them to pay damages. They also want J&J to ‘improve its corporate governance and internal procedures,’ according to a complaint filed Dec. 17 in federal court in Trenton, New Jersey. Any money recovered would go to the company and not investors.”
The story notes that J&J “recalled more than 40 types of medicines this year because of contamination and incorrect labeling. U.S. lawmakers began investigating J&J after a recall of batches of children’s Tylenol in April forced the company to suspend operations at a Pennsylvania plant. The probe uncovered the use of contractors to buy defective Motrin painkiller. J&J also faces government investigations into whether it illegally marketed drugs and devices for uses not approved by the Food and Drug Administration and paid kickbacks.”
“The shareholders asked a judge to find that directors and top executives mismanaged J&J and order them to pay damages. They also want J&J to ‘improve its corporate governance and internal procedures,’ according to a complaint filed Dec. 17 in federal court in Trenton, New Jersey. Any money recovered would go to the company and not investors.”
The story notes that J&J “recalled more than 40 types of medicines this year because of contamination and incorrect labeling. U.S. lawmakers began investigating J&J after a recall of batches of children’s Tylenol in April forced the company to suspend operations at a Pennsylvania plant. The probe uncovered the use of contractors to buy defective Motrin painkiller. J&J also faces government investigations into whether it illegally marketed drugs and devices for uses not approved by the Food and Drug Administration and paid kickbacks.”
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