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J&J agrees to pay $22.9 million to settle recall suit

Suit claims company misled investors about quality control, leading to recalls

The world’s largest health care products manufacturer has agreed to pay for its mistakes.

Earlier this week, Johnson & Johnson (J&J) agreed to pay $22.9 million to settle a class action lawsuit claiming it investors about quality-control failures that led to recalls, including the largest recall of over-the-counter children’s medicine in U.S. history.

The investor plaintiffs claimed J&J and its executives made misleading statements about the recalls, and as a result, they suffered stock losses after more details about the recalls became public. 

“The proposed settlement is a favorable recovery for the class especially when viewed in light of the significant risks posed by continued litigation,” stated the filing, which J&J submitted on Monday.

As part of the settlement, J&J will make no admission of wrongdoing. The settlement would cover buyers of J&J shares between Oct. 14, 2008, and July 21, 2010.

Read Bloomberg for more information.

For more pharmaceutical-related stories from InsideCounsel, read:

Walgreens reaches $80 million settlement over painkillers

FDA allows continued sale of generic Opana painkiller

FDA issues warning about shortened cancer drug name

FDA considering petition to protect biologic medications’ patents

Generic-drug makers sue brand-name companies for product samples

Novartis cancer drug not innovative enough for patent, India Supreme Court rules

No wider recall for glass-tainted generic Lipitor

Pfizer settles Chantix suits for $273 million

Ashley Post

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