Johnson&Johnson stocks have dropped by $40 bn due to an asbestos scandal

American company Johnson&Johnson has lost approximately $40 billion of capitalization due to asbestos in its baby powder, according to the CNBC publication.

The main reason for the fall is Reuter’s research. The periodical claims that leaders and lawyers of J&J knew about asbestos in baby powder since 1971. At the same time, company representatives commented this information as false and misleading.

“The Reuters article is one-sided, false and inflammatory,” the company wrote on the official blog. “Johnson & Johnson’s baby powder is safe and asbestos-free. Studies of more than 100,000 men and women show that talc does not cause cancer or asbestos-related disease. Thousands of independent tests by regulators and the world’s leading labs prove our baby powder has never contained asbestos.”

As a result, December 14 was “black Friday” for Johnson&Johnson. According to the trading report company`s shares decreased by 10% and stopped at $133 point. That`s why the manufacturer has lost $39,8 bn when we are talking about market value and the capitalization of J&J is approximately $356,7 bn.

It will be recalled that U.S. Court had fined Johnson&Johnson and the company was ordered to pay $4,4 bn to 22 women. They accused J&J in became ill with cancer due to using company`s asbestos products during decades.

If you want to know more about Johnson&Johnson stocks, you should visit GMOTrading site.

The information above cannot be considered as an investment advic and past results do not indicate future performance.

**Investors should have experience and understand the risks of losing all the initial investment

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