Johnson & Johnson's Latest Talcum Powder Development Could Be Costly
Healthcare conglomerate Johnson & Johnson's (NYSE: JNJ) ongoing litigation over the alleged health effects of its talc-based baby powder continues to hang over the company's head. Recently, an appeals court ruled against Johnson & Johnson's attempt at using bankruptcy protection to shield itself from claims.
An analyst from JPMorgan estimated that Johnson & Johnson's potential talc liabilities could approach $8 billion to $10 billion, which is no small pill to swallow. But should that keep investors away from the stock? Here is why that may not be the case.
There are currently somewhere in the neighborhood of 40,000 lawsuits pending against Johnson & Johnson, alleging that its talcum-based baby powder can cause ovarian cancer. The company is officially pulling its talcum powder from shelves worldwide this year, but has fought the allegations against it.
Source Fool.com
