Legal experts say that the FDA finding of asbestos in a bottle of Baby Powder has undermined J&J’s stance in fighting thousands of lawsuits from consumers who blame their use of the product for getting cancer
LOS ANGELES/NEW YORK - Facing off against a plaintiff’s lawyer for the first time about Johnson & Johnson’s Baby Powder, the company’s Chief Executive Alex Gorsky earlier this month insisted that the company’s iconic brand was safe.
That’s harder for him to say now. Last Wednesday, just 13 days after his deposition, the U.S. Food and Drug Administration told the healthcare giant it had discovered asbestos, a known carcinogen, in a bottle of Johnson’s Baby Powder. In the deposition, Gorsky was pressed again and again to say - without qualification - that the company’s powders were asbestos free. But in answering questions under oath for the first time in the talc litigation, he stuck to his statement that he “believed” J&J’s powders were clean.
In a written response to questions from Reuters on Monday, J&J added that Gorsky had no knowledge of the FDA finding of asbestos at the time of his deposition. J&J declined to comment on the possibility of a second round with Kramer or about its legal strategy following the FDA test result. In the end, however, Gorsky said the company, which also sells Baby Powder made from cornstarch, stuck with talc because it was confident about its safety and because many consumers liked its feel.
Gorsky, who said in the deposition he uses Johnson’s Baby Powder and had also used it on his son, didn’t budge. “I did not personally conduct every single test. I can only … gauge it based upon the data and totality that’s been presented to me.” In the subsequent days, J&J tweeted, posted on Facebook, ran a series of full-page newspaper ads, published a lengthy rebuttal to the Reuters investigation on its website and announced a $5 billion stock buyback.
And that evening, Cramer sent a followup: “Thank you, Alex. Do not be afraid to overwhelm me. I will work all weekend to tell the truth about your great company!!! -Jim.”“We want to make sure that our trust and integrity that we’ve earned over the last 130 years is maintained for the next 130 years,” he told viewers.
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