Johnson & Johnson Stock Sinks As U.S. Probes Baby Powder

The U.S. Justice Department is pursuing a criminal probe into whether Johnson & Johnson (JNJ) lied about possible cancer risks of its talcum powder, the Bloomberg reported, citing people with knowledge of the matter.

Shares of J&J declined by 4.15 per cent to close at US$134.30, following the report.

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.

J&J disclosed in its annual report in February that it had received subpoenas from the Justice Department and Securities and Exchange Commission related to the ongoing baby powder litigation.

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