Keep an eye on beaten-down, oversold shares of Johnson & Johnson (JNJ).
The stock is attempting to rebound from about $150 a share. All on news of a potential $9 billion settlement over claims its talcum powder causes cancer.
As noted by Barron’s, Johnson & Johnson said that its subsidiary, LTL Management, would refile for bankruptcy protection and be funded with $8.9 billion over 25 years to cover talc liabilities. “Importantly, neither LTL’s original filing nor this refiling is an admission of wrongdoing, nor an indication that the Company has changed its longstanding position that its talcum powder products are safe,” as noted in a JNJ press release.
If the plan is approved by the courts and claimants, the company could put thousands of potential lawsuits behind it –and move on. As also noted by Barron’s, “A group of 17 law firms representing nearly 70,000 talc cancer victims said it supports the settlement. ‘This settlement will provide expeditious, substantial, and fair compensation to claimants who cannot afford to wait any longer for a resolution.’”