Johnson & Johnson Down 8% On Report Of Asbestos In Baby Powder

(RTTNews) - Shares of Johnson & Johnson (JNJ) slipped a sharp 8% on Friday after a report from Reuters said the healthcare giant knew for decades that its baby powder contained asbestos.

While J&J insists on the safety and purity of its iconic product, internal documents examined by Reuters show the company's powder was sometimes tainted with carcinogenic asbestos and that J&J kept that information from regulators and the public.

The review showed that from 1971 to the early 2000s, J&J executives, mine managers, doctors and lawyers were aware the company's raw talc and finished powders sometimes tested positive for small amounts of asbestos. However, the problem was never disclosed to regulators or the public.

"Plaintiffs' attorneys out for personal financial gain are distorting historical documents and intentionally creating confusion in the courtroom and in the media," Ernie Knewitz, J&J's vice president of global media relations, told Reuters in an email. "This is all a calculated attempt to distract from the fact that thousands of independent tests prove our talc does not contain asbestos or cause cancer. Any suggestion that Johnson & Johnson knew or hid information about the safety of talc is false."

The company has faced a series of lawsuits alleging its baby powder products contain asbestos and caused ovarian and other cancers. In July, a Missouri jury ordered J&J to pay $4.9 billion in a case involving 22 women and their families.

JNJ is currently trading at $135.99, down $11.85 or 8.02%, on the NYSE, on a volume of 37 million shares, far above the average volume of 7.3 million shares.