After the arrival of a new report via Reuters, Johnson & Johnson is experiencing great plunge in shares. It was on Friday that the publication published new findings from an investigation that reportedly found that Johnson & Johnson raw talc and baby powders were found to “sometime” test positive for substances such as asbestos from 1971 to the early 2000s. According to the report, the number of high-ranking employees who knew of such findings including executives and lawyers who refrained from disclosing such details to regulators and consumers.
Asbestos is a mineral that was mined for centuries and found its way in thousands of products worldwide because of its durability and resistance to heat and chemicals. Continued research, however, has found that asbestos materials can lead to dangerous exposure that can lead to cancer, mesothelioma and other diseases. The product has since been banned in the United States, but still poses a threat as traces are still found in products and materials such as hair dryers and even car parts.
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Since the report was published, Johnson & Johnson has experienced falls as high as 11 percent on the market. Nevertheless, the company has issued a statement denying the allegations.
“The Reuters article is one-sided, false and inflammatory,” the company wrote. “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.”