J&J Baby Powder Lawsuits Shift Company's Direction
The healthcare giant announced it will begin to focus on organic, premium products after many of its baby products have taken a hit, in part because of the more than 1,000 talcum powder ovarian cancer lawsuits currently pending around the country.
Thursday, April 28, 2016 - Johnson & Johnson's baby powder cancer lawsuits have begun to influence the business model of the company's marketing of baby products. Johnson & Johnson announced recently that it will become more focused on organic, natural products in its baby care division. The change has been mimicked with other top companies as the consumer market gravitates further toward organic and naturally sourced products. The talcum powder cancer lawsuits also impacted the decision from Johnson & Johnson, as profits from the controversial product have plunged in the first quarter of 2016.
The sales in the US for Johnson & Johnson baby care products dipped by 14 percent in the first quarter of 2016. In addition to baby powder involved in the talcum powder lawsuits, these products include shampoos, lotions, and additional Johnson & Johnson brands associated with baby care. Much of this drop can be attributed to the news spreading around the country concerning the medical research supporting a link between baby powder and ovarian cancer.
The research supporting a link between ovarian cancer and talcum powder has been used as evidence in more than 1,200 Johnson & Johnson's baby powder lawsuits pending around the country. The data, published in a number of reputable medical journals, has put the increased risk of ovarian cancer as a result of women employing the regular, genital use of talcum powder as high as 33 percent. The talcum powder ovarian cancer lawsuits claim that Johnson & Johnson knew of the research being done on their products and decided against affixing a warning label to their products to alert consumers to the potential dangers of using talcum powder genitally.
The first Johnson & Johnson's baby powder cancer lawsuit to receive damages following trial took place in February, where a plaintiff was awarded $72 million in damages after alleging that Johnson & Johnson knowingly marketed their talcum powder products after they became aware of the ovarian cancer link. Baby powder cancer lawyers representing the plaintiff provided the court with internal Johnson & Johnson documents that revealed company doctors advising that a warning label be put on talcum powder products in light of the medical research supporting the ovarian cancer link. The jury found that Johnson & Johnson were at fault for not actively attempting to protect their consumer base in the interest of protecting the marketability of their products and handed down the damages to reinforce that point. Of the $72 million award, $10 million went directly to the plaintiff while $62 million was levied as punitive damages against Johnson & Johnson.
The large amount of damages in the talcum powder cancer lawsuit trial caught the eye of news outlets worldwide, which put out stories questioning the safety of Johnson & Johnson's talcum powder products. This press led to the downturn in sales for Johnson & Johnson's baby care products, and likely influenced the company's decision to focus on more organic and naturally-sourced products. A second trial before the same court where the large damages were handed down in February is currently underway, with another decision against Johnson & Johnson likely to do further damage to the company's baby care brand.