Johnson & Johnson (JNJ) Shares Plunge 0.64% as $966M Verdict Sparks Legal Fears

Johnson & Johnson (JNJ) shares fell to their lowest level since October 2025, with an intraday decline of 0.64%, marking a significant drop for the healthcare giant. The stock closed down 0.19% as investor sentiment soured amid ongoing legal and reputational challenges tied to its talc-based products.

At the center of the turmoil is a $966 million jury verdict against J&J in a mesothelioma lawsuit involving the family of Mae Moore, who died from cancer linked to asbestos exposure. The ruling includes $950 million in punitive damages, one of the largest awards in similar cases. J&J plans to appeal, arguing the verdict relies on “junk science,” but the outcome has amplified concerns about the company’s liability in thousands of ongoing lawsuits. Over 67,000 plaintiffs allege its talc products caused cancer, with mesothelioma cases proving particularly damaging due to their severity and high-profile jury decisions.

The litigation landscape remains volatile. While J&J has secured some appellate victories, including a reduced verdict in Oregon, the lack of a comprehensive bankruptcy resolution leaves the door open for further large awards. The company’s attempt to exclude mesothelioma claims from its proposed bankruptcy plan was rejected by courts, forcing these cases to proceed in state courts. This legal uncertainty, combined with mixed trial outcomes, has created a prolonged risk to J&J’s financial stability and public trust.

Reformulating its baby powder to cornstarch in 2020 failed to fully restore consumer confidence, as historical asbestos allegations continue to overshadow the product shift. Competitors may gain market share in the personal care sector, further pressuring J&J’s brand equity. Meanwhile, the company’s insistence on disputing scientific evidence linking talc to asbestos has drawn skepticism, with juries increasingly favoring plaintiffs in high-profile cases. Regulatory scrutiny looms, as ongoing litigation could prompt stricter oversight or recalls if new evidence emerges.

Investor concerns extend beyond legal costs to reputational damage and operational risks. The Moore verdict and related media coverage have intensified scrutiny of J&J’s corporate practices, with appeals perceived as a defensive rather than proactive response. Analysts caution that the stock’s volatility will persist until litigation is resolved, with unresolved claims and potential regulatory shifts posing long-term threats. While J&J’s diversified business model offers resilience, the cumulative impact of these challenges underscores a critical juncture for the company’s market position and investor confidence.