With the stock having been under pressure anyway as investors try to ascertain the company's potential liabilities in a series of lawsuits related to talc and other products, this latest confirmation of contamination has left shareholders selling first...
And that is weighing on Dow futures ahead of the open...
Full Statement from JNJ:
Out of an abundance of caution, Johnson & Johnson Consumer Inc. (JJCI) announced that it is initiating a voluntary recall in the United States of a single lot of its Johnson's Baby Powder in response to a U.S. Food and Drug Administration (FDA) test indicating the presence of sub-trace levels of chrysotile asbestos contamination (no greater than 0.00002%) in samples from a single bottle purchased from an online retailer. Despite the low levels reported and in full cooperation and collaboration with the FDA, JJCI is initiating this voluntary recall of Lot #22318RB of Johnson's Baby Powder, from which the tested sample was taken.
In parallel, JJCI has immediately initiated a rigorous, thorough investigation into this matter, and is working with the FDA to determine the integrity of the tested sample, and the validity of the test results. At this early stage of the investigation, JJCI:
Cannot confirm if cross-contamination of the sample caused a false positive.
Cannot confirm whether the sample was taken from a bottle with an intact seal or whether the sample was prepared in a controlled environment.
Cannot confirm whether the tested product is authentic or counterfeit.