Summary
Johnson & Johnson was handed a $4.7 billion product-liability verdict last week, the 6th largest in US history.
Though company lawyers have found appellate success recently, this more legitimate case may not be able to be thrown out.
The bellwether verdict sets a dangerous precedent going forward, with nearly 10,000 remaining ovarian cancer claims pending.
Invest only if you would be comfortable owning a stock even if you had no way of knowing its daily share price.
- Benjamin Graham, The Intelligent Investor
Johnson & Johnson (NYSE:JNJ) was just handed the sixth most expensive product defect judgement in U.S. history. J&J was ordered to pay $550 million in compensatory damages and $4.14 billion in punitive damages by a Missouri court, but plans to appeal the decision. If the verdict perseveres through the defense's appellate efforts, the $4.7 billion verdict would be reduced by at least 30% due to state punitive damages legislation.
