SAN FRANCISCO, Jan. 18, 2010 (GLOBE NEWSWIRE) -- Hagens Berman is investigating claims whether pharmaceutical giant Johnson & Johnson (NYSE:JNJ) defrauded investors by not disclosing that some of its consumer products including Tylenol may be contaminated.
Reports claim Johnson & Johnson knew of the contamination issue, which is linked to health issues in some consumers, since 2008 but neglected to fully disclose the problem to shareholders and the general public until today after pressure by federal regulators.
Earlier today, Johnson & Johnson recalled several brands of over-the-counter products from store shelves including Tylenol, Motrin, Rolaids and Benadryl.
The U.S. Food and Drug Administration issued a Warning Letter to the company for failing to disclose in September 2009 contamination of the products by 2,4,6-tirbromoanisole (TBA), a chemical used as a fungicide, wood preservative and flame retardant. Johnson & Johnson has admitted that the effects of TBA on humans have not been heavily studied. Consumers using the TBA-affected products have reported nausea, vomiting, and diarrhea.
"We are surprised that a company that has been praised in the past for confronting a crisis with complete honesty and quick action has now chosen to hide the facts from the public and the regulators and hope the problems would disappear," said Hagens Berman partner Reed K. Kathrein. "We hope to get to the bottom of the story on behalf of the investors we represent."
The firm is interested in talking with those who have first-hand knowledge of the issue.
Investors that purchased stock in Johnson & Johnson after Sept. 1, 2009 can contact Reed K. Kathrein with Hagens Berman Sobol Shapiro at reed@hbsslaw.com or call 510-725-3000 to discuss the investigation.
You can also follow news about this investigation at www.hbsslaw.com. HBSS will treat all information shared as confidential.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is a nationally recognized class-action and complex-litigation law firm based in Seattle with offices in San Francisco, Chicago, Boston, Los Angeles and Phoenix. Among recent successes, HBSS negotiated a $300 million settlement in the DRAM memory antitrust litigation, the largest antitrust settlement in U.S. history, recovered $340 million on behalf of Enron employees, and was part of the leadership team in the $3 billion Visa/MasterCard settlement. In pharmaceutical litigation, the firm's recent successes include a $350 million settlement with McKesson, more than $200 million with other parties in drug-pricing litigation, and a $150 million settlement regarding Lupron. HBSS represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit http://www.hbsslaw.com/">www.hbsslaw.com.