J&J plunged 2% following a jury award of excessive $8 billion in damages

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J&J plunged 2% following a jury award of excessive $8 billion in damages

On Wednesday, the 9th of October 2019, shares of Johnson & Johnson had dropped 2 per cent after a Jury had awarded an additional $8 billion in punitive damages to a plaintiff accusing the New Brunswick, New Jersey-based bio-pharma conglomerate of failing to caution that its antipsychotic drug could grow male breasts.

Although, it was widely observed in the male patients to grow breasts under antipsychotic medication, J&J was met with a heavy hit in punitive measures, an amount which analyst had been calling highly excessive, in particular for the plaintiff, Nicholas Murray, who had already received $680,000 in compensation over his claims.

Nonetheless, following Wednesday’s (October 9th) ruling, several industry analysts had also been quoted saying that the share prices of J&J would likely to be dragged down further over litigation expenses, as the world’s largest biotech company by revenue as of December 2018, J&J, had been bracing for a slew of lawsuits including unfair marketing practice of its antipsychotic medication Risperdal, its opioid medication widely seen as a heavy wind to spur opioid abuse in the United States alongside use of cancer-causing asbestos in its baby talc powder.

However, following Wednesday’s (October 9th) ruling, NYSE-listed shares of Johnson & Johnson tumbled by almost 2 per cent to wrap up the day at $129.22 per share.