Get 40% Off
🎁 Free Gift Friday: Copy Legendary Investors' Portfolios in One ClickCopy for Free

Johnson & Johnson ordered to pay $120 million damages in New York baby powder case

Published 11/20/2020, 09:55 AM
Updated 11/20/2020, 11:40 AM
© Reuters. The U.S. flag is seen over the company logo for Johnson & Johnson to celebrate the 75th anniversary of the company's listing at the NYSE in New York

By Jonathan Stempel

NEW YORK (Reuters) - Johnson & Johnson (NYSE:JNJ) has been ordered by a New York state judge to pay $120 million in damages to a Brooklyn woman and her husband, after she blamed her cancer on asbestos exposure from using the company's baby powder.

Justice Gerald Lebovits of the state supreme court in Manhattan reduced the payout from the $325 million a jury awarded Donna Olson, 67, and Robert Olson, 65, in May 2019 following a 14-week trial.

While upholding the jury's liability finding, Lebovits wrote on Nov. 11 that the damages were too high, and the Olsons could either accept $120 million or have a new trial on damages.

The judge approved the lowered payout on Wednesday, court records show. It includes $15 million of compensatory damages and $105 million of punitive damages, down from an original $25 million and $300 million, respectively.

Johnson & Johnson said it will appeal the verdict, citing "significant legal and evidentiary errors" at the trial.

"We deeply sympathize with anyone suffering from cancer, which is why the facts are so important," the company said. "We remain confident that our talc is safe, asbestos free, and does not cause cancer."

Jerome Block, a lawyer for the Olsons, said they were satisfied with the result and confident it would stand.

He also said Donna Olson's mesothelioma "is at an advanced stage, and we are hoping for the best."

Donna Olson had testified that she used Johnson's Baby Powder or Shower to Shower daily for more than 50 years.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Lebovits wrote that jurors could find that Johnson & Johnson was for many years "knowingly deceitful about" or "willfully blind to" potential health risks of its talc products, in part to maintain market share and profit.

The New Brunswick (NYSE:BC), New Jersey-based company is appealing to the U.S. Supreme Court a $2.12 billion damages award in Missouri to women who blamed their ovarian cancer on asbestos in its baby powder and other talc products.

Johnson & Johnson has faced intense scrutiny of its baby powder's safety following a 2018 Reuters investigative report that found it knew for decades about asbestos in its talc.

Internal company records, trial testimony and other evidence show that from at least 1971 to the early 2000s, J&J's raw talc and finished powders sometimes tested positive for small amounts of asbestos. (https://www.reuters.com/investigates/special-report/johnsonandjohnson-cancer/)

Latest comments

Given J&J’s appalling track record these past 10 years, if they ever come up with a Covid vaccine, nobody will trust J&J enough to take it....except Klaus down below, of course. Anyone named Klaus Weyers also will try to overthrow the world....
To people who think it's too much - so for less than $120 million, you would allow someone to knowingly give you cancer? Whats the lowest you would go to get some lung cancer put in you, and your not allowed to start fighting it off till it's late stage? Not sure there's enough money in the world where I would be ok with someone giving me cancer, but that's just me I guess.
*you're
horrible verdict and way too much money
You're a *****human.
I snorted bb powder and I'm fine... :)
Mom used baby powder on us left n right back in the 70s. We r fine. Cancer is a crazy thing. U cant pin point the real reason.
It said she used it every day for 50 years, so it's a little different. But if I knowingly expose you to esbestos powder clouds every day for 50 years but told you it was just talc, and you luckily don't happen to get cancer from it, that still doesn't make it ok that I did it.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.