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J&J in Opioid Legal Battle

Last night a judge ruled against Johnson & Johnson versus the State in a case involving opioids. The state claimed that JNJ's false advertising helped fuel the country's opioid epidemic. The fine was for $572 million. This was far less than the market was expecting and the share price actually jumped 4% on the news.

Unfortunately this is the nature of investing in pharmaceutical companies. They all have many lawsuits pending all the time. In fact, JNJ is currently facing 50 000 lawsuits as we speak. Yes you read that right. This Forbes article summarises the lawsuits quite nicely - How much Will It Cost Johnson & Johnson To Settle Most of Its Lawsuits?

These lawsuits not only inflate the prices of drugs, it also takes money away from research and development. The Irony. I suppose it does fulfil an important regulatory roll.

To conclude, healthcare is a vital sector to be invested in. Pharmaceuticals is tough and controversial. We think it is best to be invested in this sector through the biggest and the most diversified. JNJ ticks those boxes.


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