Now The States Are Going After Johnson & Johnson

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oh-myThis was predictable. Last month, Johnson & Johnson disclosed that the US Attorney’s Office in Philadelphia sent grand jury subpoenas about the vast and ongoing recall of millions of bottles of over-the-counter pediatric medicines by its McNeil Consumer Healthcare unit. Now, J&J has also received Civil Investigative Demands from multiple state Attorneys General Offices relating to the same issues.

The health care giant disclosed the latest blow to its battered reputation in a filing with the US Securities and Exchange Commission (see page 33). The federal and state probes follow comments from FDA officials that a criminal inquiry was warranted and a Congressional committee investigation that embarassed Johnson & Johnson with the disclosure of what one Congressman called a ‘phantom recall.’

That extraordinary effort was apparently undertaken to minimize the extent of quality control problems at McNeil’s Fort Washington, Pa., plant - which is now shuttered indefinitely - and another plant in Puerto Rico by surreptiously sending contractors to buy damaged products from stores in what company execs tried to downplay as a ‘retrieval’ (see here and here). Meanwhile, 300 of 400 plant workers are losing their jobs (back story), although J&J continues to remain silent on whether any McNeil execs - who work at the same location - are among those being shown the door. Maybe that’s just a matter of time?

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  1. Well-deserved! In my opinion, JNJ has been out-of-control for years!

  2. Go ahead and waste your time. JNJ is too big to fail and will toss this gnat aside with ease!

  3. Oh yeah, “too big to fail”, just like AstraZeneca and the rest. American’s health for the sake of profit, what’s new.

    Why is Wayne MacFadden the highest search quest in my stats lately? both AstraZeneca and J&J are Googling the past Seroquel and J&J risperdal king of scandal. I love how these ppl pull off this stuff and move from company to company.

    So, JNJ Rules, keep on thinking no one pays attention to corporate crime and corruption.

  4. Thank You SO Much Mr Silverman, for Brightening my day, at least.

    Whether J&J out litigates its opponents This time or not, the Cumulative Effect Will tell.

    It’s just a matter of time.

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