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$417M California verdict in J&J baby powder case suggests forum-shopping - legal experts; shares down 1%

Published 08/23/2017, 10:36 AM
© Reuters.  $417M California verdict in J&J baby powder case suggests forum-shopping - legal experts; shares down 1%
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  • Legal experts say the recent $417M awarded to a woman in a California district court against Johnson & Johnson (JNJ -1%) suggests forum-shopping, meaning plaintiffs seek to file cases in favorable jurisdictions.
  • The award, the largest to date by far, opens a new front in the litigation. The company hoped to confine the baby powder lawsuits to Missouri, where a St. Louis district court was hearing a number of the cases. A total of $307M has been awarded there to date.
  • Companies have long fought the practice, a stance backed by a June ruling by the U.S. Supreme Court stating that state courts should not hear claims against out-of-state firms when the alleged injury did not occur there. A St. Louis judge subsequently declared a mistrial in a talc case involving two out-of-state women.
  • J&J maintains that the Supreme Court ruling requires the reversal of the four unfavorable St. Louis verdicts.
  • The Los Angeles judge allowed the testimony of some of the St. Louis plaintiffs' experts.
  • The company faces ~4,800 lawsuits claiming the use of its baby powder led to ovarian cancer.
  • Previously: J & J on the hook for $417M in California talcum powder case (Aug. 21)
  • Now read: Johnson & Johnson: A Dividend Aristocrat You Must Neither Sell Nor Buy At These Prices

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