J&J has fought lawsuits for years over claims that its baby powder caused cancer. Last May, the company stopped selling talc-based Johnson’s Baby Powder in the US and Canada, attributing the decision to “changes in consumer habits.”
The company had asked the Supreme Court to reconsider a ruling by the Missouri Court of Appeals that awarded $2.1 billion to 22 different women whose cases the trial court judge had combined. The appeals court cut the original jury award, which was $4.7 billion.
Those 22 women represent just a tiny fraction of the lawsuits J&J faces from people claiming to have been injured by the company’s body powders containing talc. In its most recent quarterly filing, the company said it faced 28,900 suits.
In a statement, the company noted that the appeal had been brought on legal questions, rather than on factual questions regarding the safety of the company’s products. J&J has long maintained that its baby powder is safe, that it doesn’t contain asbestos, and that it doesn’t cause cancer.
"The decision by the Court to not review the Ingham case leaves unresolved significant legal questions that state and federal courts will continue to face on issues related to due process rights and personal jurisdiction,” the company said. “The Supreme Court has many times said that its decision to deny hearing a case expresses no view on the merits whatsoever, and we continue to believe that our view of the law and the facts will ultimately prevail.”
Despite its talc-troubles, J&J's stock is up more than 5% this year and analysts remain bullish. In a note out midday Tuesday, SVB Leerink analyst Danielle Atalffy noted that the key talc litigation won’t come until early next year, when a combined multidistrict proceeding begins.
“This decision does not fundamentally change our view on JNJ’s growth trajectory nor the company’s ability to execute and is more noise than anything else,” she wrote.
