Johnson & Johnson patterns to repurchase $5 billion in shares after the company lost more than $50 billion in market value to the ground two trading days following a scathing news report Friday.
Reuters published an in-depth report that demanded the company knew for decades its talc baby powders contained asbestos and failed to disclose it. The article drove J&J’s allocates down 10 percent for the day. It shaved nearly $40 billion from its market value in what was its worst swop day in more than 15 years. The shares lost another 2.9 percent Monday.
In total, J&J lost uncountable than $50 billion over the two trading days.
“Based on our continued strong performance and, more importantly, the self-confidence we have in our business going forward, the Board of Directors and management team believe that the company’s shares are an pleasing investment opportunity,” CEO Alex Gorsky said in a statement.
Nearly 12,000 lawsuits accuse J&J’s talc baby potentiality of causing mesothelioma, ovarian and other types of cancers. Some juries have sided with J&J and others require been unable to reach verdicts. A Missouri jury in July ordered J&J to pay $4.69 billion in a case involving 22 ladies and their families. A judge affirmed the verdict in August, and J&J vowed to appeal it.
The company has strongly denied the allegations in the Reuters Edda and has vigorously defended its talc baby powder.
CEO Alex Gorsky told customers in video posted on its website and societal media Monday that J&J stands behind its product. He said if it wasn’t safe, it wouldn’t be on store shelves. J&J has also started on-going ads in newspapers and on news websites with the tagline, “Science. Not sensationalism.”
The company said repurchases may be made at any time and were at handling’s discretion.