Johnson & Johnson
J&J subsidiary McNeil's consumer divisionrecalled 12 million bottles of Motrin coated caplets and tablets from retailers distributed in the United States, Puerto Rico, the Bahamas, Fiji, Belize, St. Lucia, and Jamaica.
It is the latest in a series of recalls the New Brunswick, N.J., company has issued, ranging from over-the-counter medication to hip replacements from its subsidiary, DePuy Orthopaedics. Analysts estimate DePuy's hip implants alone could cost Johnson & Johnson as much as $1 billion in lawsuits. The metal-on-metal hip implants were found to shed metal particles into a patient's bloodstream over time.
In March, the frequency of recalls for its over-the-counter division prompted Johnson & Johnson to announce it would overhaul its McNeil consumer health-care division, particularly at its manufacturing plants in Las Piedras, Puerto Rico, and Fort Washington, Pa.
In another bit of bad news for the drugmaker, a U.S. District Court judge in New Jersey is allowing a securities fraud suit brought by investors to go forward. The lawsuit alleges Johnson & Johnson misled investors about quality control lapses at the McNeil plants that led to recalls.
The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Dividend Stocks That Pay Out Over $8 Billion a Year
Can these huge companies keep the big dividend bucks flowing?
Johnson & Johnson Aims to Start 2018 Healthy
Investors have high hopes for the healthcare conglomerate.
Is Johnson & Johnson a Buy?
Is now a good time to invest in the healthcare titan's stock?