Is Johnson & Johnson Losing Investor Confidence Over Talc Lawsuits?
Johnson & Johnson (J&J), a global healthcare giant, is grappling with significant legal and financial challenges stemming from over 67,000 lawsuits alleging that its talc-based baby powder caused cancers such as ovarian cancer and mesothelioma. These lawsuits have led to substantial financial settlements and have raised concerns among investors about the company's long-term shareholder value.
What Is Happening with Johnson & Johnson?
In October 2025, a Los Angeles jury ordered J&J to pay $966 million in damages to the family of a woman who died from mesothelioma, linking her illness to the company's talc-based baby powder. This verdict included $950 million in punitive damages, marking one of the largest awards in such cases. J&J has maintained that its talc products are safe and asbestos-free, though it discontinued them in the U.S. in 2020 and in the UK in 2023. Reuters+1
What Is Johnson & Johnson Famous For?
Founded in 1886, Johnson & Johnson is renowned for its wide range of healthcare products, including medical devices, pharmaceuticals, and consumer health goods. Its baby powder, introduced in 1893, became an iconic product. However, the company has faced criticism and legal challenges over the years concerning the safety of its talc-based products.
Is Johnson & Johnson Owned by Pfizer?
No, Johnson & Johnson is an independent company and is not owned by Pfizer. Both are major players in the healthcare industry but operate as separate entities with distinct product lines and corporate structures.
Why Is Johnson & Johnson Being Discontinued?
Johnson & Johnson has announced the discontinuation of its talc-based baby powder products globally by 2023, transitioning fully to cornstarch-based baby powders. This decision follows tens of thousands of lawsuits alleging that the talc products caused cancer, though the company maintains that their talc-based powders are safe and asbestos-free. Despite stopping sales in North America in 2020 due to declining demand and legal challenges, J&J continues to support the safety of its talc-based products. The Guardian
Impact on Shareholder Value
The ongoing legal battles and reputational damage have affected J&J's stock performance. The company's shares experienced a decline following the rejection of the bankruptcy settlement, reflecting investor concerns over the financial implications of the lawsuits and the potential for further legal challenges.
Who Are J&J's Major Shareholders?
As of December 2022, the largest shareholders of Johnson & Johnson include:
-
Vanguard Group: 9.4% ownership
-
BlackRock: 7.6% ownership
-
State Street: 5.5% ownership
These institutional investors hold significant stakes in the company, influencing its governance and strategic decisions. Reuters
Conclusion
The talc-related lawsuits have placed Johnson & Johnson under intense scrutiny, impacting its financial standing and shareholder value. While the company continues to maintain the safety of its products, the legal challenges and associated costs have raised concerns among investors about the company's future performance and reputation.
Related: 10 Iconic Companies That Rebounded After Bankruptcy
