Johnson & Johnson shares plunge after report that says it knew about asbestos in its baby powder

Source: CNN

New York (CNN Business)Johnson & Johnson's (JNJ) stock fell as much as 11% on Friday — on track for its worst day since 2002 — after a Reuters report said the company knew for decades that asbestos was in its baby powder.

The company has been grappling with lawsuits alleging some of its talcum powder products caused cancer. But the Reuters report cites documents and other evidence that indicate company executives, mine managers, scientists, doctors and lawyers knew about the problem and failed to disclose it to regulators or the public.

The plunge in J&J's shares rippled across Wall Street. J&J is among the most widely held stocks and it's also a member of the Dow.
Reuters said it examined documents, including depositions and trial testimony, that show that from at least 1971 to the early 2000s, J&J's raw talc and finished baby powders sometimes tested positive for small amounts of asbestos, a human carcinogen that can cause cancer.

Read more: https://www.cnn.com/2018/12/14/business/johnson-and-johnson-stock-baby-powder-asbestos/index.html