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.
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