The Clap
Johnson & Johnson (NYSE: JNJ) will stop selling talc-based baby powder globally starting 2023.
The Deets
Two years ago, J&J suspended US sales of the product after the product led to numerous consumer safety concerns and legal issues.
Many consumers filed lawsuits against J&J claiming that the talc-based baby powder caused cancer due to contamination. After denying these allegations, J&J announced the discontinuation of the product.
How has this affected J&J?
The company has been facing costs of $3.5 billion in settlements to affected consumers. J&J assigned the claims to its subsidiary LTL Management, which then filed for bankruptcy, which paused any pending lawsuits.
Now, the company will discontinue the sale of the product, putting into question whether J&J knew about the side effects or not.
Talc-based baby powder pushed J&J against the wall 👶
