J&J Receives Federal Subpoenas Linked to Baby Powder

J&J Receives Federal Subpoenas Linked to Baby Powder

Introduction

Johnson & Johnson told on Wednesday it received subpoenas from the U.S. Justice Department and the Securities and Exchange Commission (SEC) seeking documents related to the company's popular baby powder and other talc-based products.

The disclosure was made during an annual federal report filed with the SEC. The company intends to comply with the subpoenas and respond to a request from Senator Patty Murray (D-Wash.) to produce documents related to the safety of its baby powder. A J&J spokesperson told the inquiries were the result of reports released in December linked to a large number of product liability lawsuits filed against the company over complaints of ovarian cancer and mesothelioma due to asbestos exposure from talc.

There are at least 13,000 lawsuits filed against the talcum giant who has been accused of concealing asbestos presence in its product and the cancer risks from consumers. Recently, J&J's talc supplier, Imerys Talc America Inc., was dropped from an upcoming talcum powder trial, after a Chapter 11 bankruptcy was filed on February 13 in Delaware.

Earlier, an appeals court in South Carolina upheld a $14 million asbestos verdict in a wrongful death lawsuit filed by the family of a victim who died of mesothelioma because of asbestos exposure while working at a polyester plant.

The victim worked as a contractor in a Celanese plant where he did maintenance and repair work for nine years since the 1970s. His work involved frequent contact with asbestos gaskets, packing, and insulation materials. According to court documents, he was diagnosed with mesothelioma in 2013 and died from advanced mesothelioma a year later. The victim and his wife sued Hoechst Celanese Corp., now known as CNA Holdings, for negligent conduct, failure to warn about the hazards of asbestos exposure, and failure to take adequate safety steps against asbestos exposure in the plant. In 2015, a South Carolina jury awarded the victim $12 million in compensatory damages and $2 million in punitive damages. CNA Holdings sought to dismiss the lawsuit and requested for summary judgment, asserting that the victim was a statutory employee, hence his case falls under South Carolina Workers' Compensation Act. 

The circuit court denied the motion for summary judgment at the conclusion of the trial, as a jury found that the plant’s negligence was the reason for the man's cancer. CNA Holdings filed several motions for a new trial; however, the circuit court declined the company's argument that the jury's decision had outside influences. 

Asbestos fibers from talcum powder have been the reason for ovarian cancer and mesothelioma in several individuals who used talc-based products.