Johnson & Johnson noticed its shares endure their greatest drop in 16 years, following a media report that alleged the corporate hid for many years that hint quantities of asbestos was in its child powder.

The Red Tea Detox

Shares of the U.S. pharmaceutical and cosmetics group fell 9 p.c Friday, wiping out tens of billions of {dollars} from the corporate’s market capitalization.

Linked to ovarian most cancers

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The report Friday, by Reuters information service, cited paperwork launched as a part of a lawsuit by plaintiffs claiming that Johnson & Johnson’s child powder might be linked to ovarian most cancers.

It stated that the corporate’s executives knew the newborn powder contained hint quantities of asbestos, from as early as 1971, however intentionally selected to not make the data public.

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The Reuters report additionally alleged that Johnson & Johnson tried, unsuccessfully, to cease regulators from decreasing the utmost degree of asbestos allowed in talc-based cosmetics.

Report is strongly denied

Johnson & Johnson strongly denied the report Friday, calling it “one-sided, false and inflammatory.”

“Merely put, the Reuters story is an absurd conspiracy idea,” the corporate stated in a press release. “Johnson & Johnson’s child powder is protected and asbestos-free.”

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The controversy has lengthy dogged the corporate, which has been battling greater than 10,000 circumstances claiming its Child Powder and Bathe to Bathe merchandise trigger ovarian most cancers.

Buyers fear the lawsuits will price the corporate billions of {dollars} in damages and lack of future gross sales of Johnson & Johnson merchandise.

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