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J&J Must Defend Shareholder Lawsuit

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U.S. District Judge Freda Wolfson in Trenton, New Jersey has ruled that Johnson & Johnson must defend a securities fraud lawsuit that claims the company mislead investors about failures of quality control procedures at various manufacturing plants which lead to product recalls. The lawsuit, filed against J&J, Colleen Goggins, former head of the consumer group and another executive will go forward, Bloomberg reports, however the judge dismissed claims against Chief Executive Officer William Weldon and McNeil Consumer Healthcare division President Peter Luther.

The lawsuit says that J&J and executives mislead investors about the details of recalls of over-the-counter drugs made at the Las Peidras, Puerto Rico, and Fort Washington, Pennsylvania McNeil manufacturing plants, and that the investors suffered losses after the reasons for the recalls became public.

Bloomberg reports that Judge Wolfson said in a 55 page opinion that the “Plaintiff’s assertion that Goggins attended the Feb. 19, 2010, meeting where the phantom recall was discussed sufficiently alleges that she had knowledge of the recall when she testified” at a Congressional hearing “that she did not have such knowledge.”

Wolfson had dismissed a similar lawsuit in October that claimed that J&J directors ignored “red flags” that foreshowed product recalls and probes by the government concerning manufacturing defects and marketing practices.

 

breakinglawsuitnews.com disclaimer: This article: J&J Must Defend Shareholder Lawsuit was posted on Thursday, December 22nd, 2011 at 7:33 pm at breakinglawsuitnews.com and is filed under Defective Drug Lawsuits.

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