Johnson & Johnson summons by MJ and SEC on safety issues related to baby powder

(Reuters) – Johnson & Johnson announced Wednesday that it has received subpoenas from the US Department of Justice and the Securities and Exchange Commission (SEC) for litigation involving suspected asbestos contamination in its product line. headlights, baby powder.

The company has announced its intention to "cooperate fully with these investigations and will continue to defend the company in the talc dispute".

The disclosure in Johnson & Johnson's annual report on Wednesday is the first time the company has announced it has received subpoenas from federal agencies regarding its talcum powder-based products.

The Department of Justice and the SEC did not immediately respond to requests for comment.

A December 14 Reuters report revealed that Johnson & Johnson had known for decades that small amounts of asbestos, a known carcinogen, had occasionally been found in its talc and powdered products, according to a Reuters report. tests performed in the 1970s to early 2000s – information gathered not to disclose to regulators or the public.

The Reuters article provoked a massive sell-off of Johnson & Johnson shares, wiping out about $ 40 billion of the company's market value in one day, and a public relations crisis as the health conglomerate was faced with many questions about the possible health effects of one of its most iconic products.

Johnson & Johnson said the federal investigations "are linked to reports containing inaccurate statements and hiding crucial information" that have already been made public.

The company added that "decades of independent testing by regulators and leading laboratories around the world prove that Johnson & Johnson's baby powder is safe and asbestos-free, and does not cause cancer."

Johnson & Johnson is being sued over 13,000 plaintiffs who allege that the use of its talc-based products, including baby powder, has caused cancer.

Last month, US Democratic Senator Patty Murray sent a letter to J & J CEO Alex Gorsky asking for documents and information regarding the testing of his talc agents for the presence of carcinogens. and how it has presented this information to regulators and consumers.