Johnson & Johnson Faces Issue from Shareholders

Posted on December 22nd, 2010 1 Comment

A group of Johnson & Johnson shareholders accused the company’s directors of ignoring “red flags” foreshadowing product recalls and government probes of manufacturing defects and marketing practices.

The shareholders asked a Federal Judge to find that directors and top executives mismanaged the situation and force them to pay damages.  . Any money recovered would go to the company and not investors individually. They also want J&J to “improve its corporate governance and internal procedures,” according to a complaint filed Dec. 17 in federal court in Trenton, New Jersey.

Johnson & Johnson, the world’s largest manufacturer of health-care products was forced to recall more than 40 types of different medicines this year because of contamination and incorrect labeling. U.S. lawmakers began investigating J&J after a recall of batches of children’s Tylenol in April forced the company to suspend operations at a Pennsylvania plant.

The probe uncovered the use of contractors to buy defective Motrin painkiller.

J&J also faces government investigations into whether it illegally marketed drugs and devices for uses not approved by the Food and Drug Administration and paid kickbacks. On Dec. 17, shareholders amended their so-called derivative lawsuits that seek to force directors and officers to pay the company.

While J&J once set “the gold standard for integrity and excellence,” the directors’ “utter disregard for their fiduciary duties, including permitting and fostering a culture of systemic, calculated and widespread legal violations has destroyed J&J’s hard-earned reputation,” shareholders claim.

1 Comment

One Response to Johnson & Johnson Faces Issue from Shareholders

  1. Suzanne McClain says:

    This is good news! J&J has been ignoring red flags regarding their surgical mesh devices for a long time. In fact, they have “cleared” mesh devices to proceed to market, based upon predicate devices that can be tied to the ProteGen Sling, a device that the FDA “officially” recalled on March 17, 1999.

    I have tied over 60 bladder mesh devices that have been cleared back to this recalled device.

    In case there is any question as to whether Johnson & Johnson has ignored red flags, please refer to the following articles to see how I have documented the clearance for the first 30-35 devices.

    http://ireport.cnn.com/docs/DOC-416625

    http://ireport.cnn.com/docs/DOC-422675

    Johnson & Johnson should be held accountable, as they are clearly negligible in their practices!

    The FDA should be held accountable for utilizing the 510K clearance process for devices which are permanently implanted in ones body.

    This is all done in the name of greed, and it is sickening!

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