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Johnson & Johnson lost $39.8 billion in market value Friday after Reuters said the company knew for decades that its baby powder contained asbestos, an allegation the company denied.
J&J said the story was “one-sided, false and inflammatory” and an “absurd conspiracy theory,” according to a statement.
The article goes on to state the following:
Thousands of lawsuits have accused J&J’s talc-based baby powder for containing asbestos and causing ovarian and over types of cancers. Investors have expressed some concern over the lawsuits, though J&J has successful won a number of cases.
Friday’s report spooked the Street and drove J&J’s shares down 10.04 percent to close at $133 a share, losing about $39.8 billion of it market value. J&J now has a market capitalization of $356.7 billion. The shares recovered somewhat after tumbling as much as 11.9 percent in intraday trading.
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