Johnson & Johnson was subpoenaed by the DOJ and the SEC over baby powder safety
- Johnson & Johnson was subpoenaed by the Department of Justice and Securities and Exchange Commission to produce documents relating to the safety of the company's baby powder and other products containing talc.
- The inquiries were disclosed in a filing with the SEC on Wednesday.
- Johnson & Johnson was cooperating with the inquiries and would produce documents in response, the filing said.
- The inquiries were related to December press reports about product-liability lawsuits against the company, a Johnson & Johnson spokesperson told The Wall Street Journal, which also reported the company would "continue to defend itself in the product-liability litigation."
- Johnson & Johnson shares were down 2.1% early Thursday.
- Watch Johnson & Johnson trade live.
Shares of Johnson & Johnson fell 2.1% early Thursday after the company disclosed it had received preliminary inquiries and subpoenas from the Securities and Exchange Commission and Department of Justice to produce documents relating to the safety of the company's baby powder and other talc-containing products.
The pharmaceutical company disclosed the inquiries in a filing with the SEC on Wednesday. Johnson & Johnson was cooperating with these inquiries and would produce documents in response, the filing said.
The inquiries were related to December press reports about product-liability lawsuits against the company, a Johnson & Johnson spokesperson told The Wall Street Journal, which also reported the company would "continue to defend itself in the product-liability litigation."
Shares plunged in mid-December after Reuters reported the company knew for decades that its baby powder contained asbestos.
At the time, Reuters said it had reviewed documents, deposition, and trial testimony from at least 1971 to the early 2000s that showed powders and raw talc sometimes tested positive for small traces of asbestos.
Wall Street analysts covering the stock had largely viewed the its dramatic decline as an overreaction, but acknowledged the company could face headwinds from investors' concerns over the products.
Johnson & Johnson shares gained 7% this year through Wednesday.
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