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Johnson & Johnson Agrees to $22.9 Million Settlement for Drug Recall Lawsuits

J&J Agrees to Pay $22.9 Million in Drug Recall Lawsuit Alleging the Company Misled Investors

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Johnson & Johnson is the world’s largest maker of health care products, ranging from shampoo to hip replacement devices. In recent years, the company has faced a range of lawsuits, many involving personal injury from the company’s products. On July 17th, the company agreed to settle the most recent in a series of lawsuits involving drug recalls, for $22.9 million.

The lawsuit claimed that the medical manufacturer misled investors about the quality-control failures which led to device and drug recalls. Specifically, the lawsuit involved the largest over-the-counter drug recall of children’s medication in US history, which was made by a J&J subsidiary, McNeil Consumer Healthcare.

Investors claimed that J&J executives made misleading statements about the nature of the drug recall and the quality control problems leading up to it, and when the truth about the drug recall was revealed, investors suffered huge stock losses.

“The proposed settlement is a favorable recovery for the class especially when viewed in light of the significant risks posed by continued litigation,” according to the filing.

According to the terms of the settlement, J&J will not admit any wrongdoing in the case.

“We maintain that the claims in this action are without merit, and settled this case in order to avoid the expense, distraction and time associated with continuing litigation,” Ernie Knewitz, a spokesman for New Brunswick, New Jersey-based J&J, said in an e-mail.

J&J suffered major drug recalls for two years, between 2008 and 2010, when it had to withdraw more than 40 brands of children’s Tylenol, Motrin, and other medications that reportedly had foul odors. An FDA investigation team found that ingredients and equipment in J&J’s Fort Washington, Pennsylvania facility had bacterial contamination that led to the smell. After contamination was discovered, J&J agreed to close down one factory for overhaul, and signed a consent decree that expanded US oversight of three other plants.

The Strom Law Firm Can Help with Improper Drug Recall Personal Injury Cases

Defective products make it to the market for a variety of reasons, and it is important that consumers are aware that they have recourse against manufacturers. Often, these defective products are inadequately tested, or are misrepresented by marketers. Defective products can have manufacturing or design flaws or defects, and if they are improperly tested then these problems will go unnoticed until consumers begin to complain.

If you or a loved one have been injured or died as a result of a dangerous drug given with a prescription, over the counter medication, improper drug recall, or defective medical device, you need an experienced pharmaceutical liability law firm which is able to stand up for your rights, and seek justice on your behalf.

The dangerous drug personal injury lawyers at The Strom Law Firm, LLC are at the forefront of the fight to protect the public, and will stand up for your rights against the big drug and insurance companies. We will fight to ensure that you and your loved ones receive the justice you deserve.  Contact our defective drug and wrongful death attorneys at the Strom Law Firm, LLC today for a free consultation to discuss the facts of your case as well as your legal rights.803.252.4800.

About Pete Strom

Defending criminal charges including drug crimes, DUI, CDV, mail fraud, wire fraud, bank fraud, computer crimes, money laundering, and juvenile crimes, Pete also handles Federal and State investigations. Representing individuals in Civil Matters including Class Actions, Personal Injury, Qui Tam Actions, Defective Products, Nursing Home Neglect, and Professional Licensing Defense cases. Joseph Preston “Pete” Strom, Jr., the managing partner at Strom Law Firm, L.L.C., has been fighting for justice since 1984.

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