J&J: stock down after an unfavorable court ruling

Published: 2025-04-01 09:40:19 ET JNJ

Johnson & Johnson is down over 4%, the day after the US Bankruptcy Court for the Southern District of Texas rejected its proposal to settle litigation involving its Red River Talc subsidiary as part of a bankruptcy plan.Rather than pursuing a protracted appeal, the group will now revert to the tort system to litigate against claims found to be without merit, and will take back around $7bn from its previous reserve."Given the lessons learned, we are more confident than ever in our position in the civil liability system," said Erik Haas, global vice president of litigation at J&J.The healthcare group points out that it has won 16 of the 17 ovarian cases tried in the last 11 years, and has already made great progress in resolving its talc litigation.