Why Johnson & Johnson Stock Is Sinking Today

Core Viewpoint - Johnson & Johnson's stock has experienced a significant decline of 6.3% following a judge's rejection of its $10 billion talc settlement proposal, amidst broader market downturns [1][2]. Group 1: Legal Challenges - A Texas bankruptcy judge dismissed Johnson & Johnson's latest attempt to settle thousands of lawsuits related to its talc-based products, which are alleged to cause ovarian cancer [2]. - The judge criticized the company for providing an "unreasonably short voting time" for claimants, leading to concerns that at least half of the votes could not be counted [3]. - This ruling marks the third failure of Johnson & Johnson's bankruptcy strategy in court [3]. Group 2: Company Response - Following the ruling, Johnson & Johnson announced plans to return to court to fight the lawsuits individually, asserting its intention to "defeat merciless talc claims" [4]. - The company continues to maintain that its products do not cause cancer and claims ignorance regarding the presence of asbestos in its baby powder, despite allegations suggesting otherwise [4].