Will Johnson & Johnson (JNJ) Baby Powder be the end of the company? Almost certainly not, but consumer paranoia could hurt sales across the giant’s product lines going forward if it loses its appeals in court. In the worst case scenario, the dividend would be put at risk and the stock price in danger of serious declines, especially in the new bear market environment.

Johnson & Johnson has been battling claims against its talc powder causing cancer in courts for years, with some success, as two months ago a jury overturned a verdict against J&J in New Jersey. That victory will not be enough though, as the issue is that J&J has about 11,700 similar plaintiffs across the United States. If taken to the mathematical extreme, these claims would destroy the company.

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