SEC Investigating J&J for Possible Failure to Disclose Talc-Related Liabilities to Investors
Federal regulators are looking into whether the firm lied to shareholders by downplaying the legal and financial risks of lawsuits over talcum powder
Tuesday, September 2, 2025 - The SEC is looking into whether J&J didn't properly reveal how much it would have to pay in legal fees because of the ongoing talcum powder lawsuits. The investigation is focused on claims that the company may have downplayed the financial risk it faced from tens of thousands of lawsuits filed by women who got ovarian cancer from using talcum powder for feminine hygiene. Investors say that the company's public filings didn't do a good job of showing how serious the talcum powder cancer risk was or how much it would cost to defend or settle such lawsuits. According to reports, the SEC is looking at the company's internal communications, investor presentations, and regulatory disclosures to see if the corporation willfully left out important information. The fact that there was no cancer warning on talcum powder products could also be important to the case because the hazards were not only not clearly communicated to customers, but also possibly to shareholders. This probe could have big effects on the company's leaders and on how other companies deal with health-related legal issues.
The SEC says that public firms must tell the public about any important legal cases that could have a big effect on their financial performance. This covers any known hazards that could lead to future losses and any lawsuits that are already going on. Legal experts believe that the SEC seems to be looking into whether the company's officials failed to warn investors about the potential legal risks at a time when talc cases were quickly rising. Some financial statements talked about ongoing talc lawsuits, but critics argue they were either too imprecise or too hopeful considering the billions of dollars at stake. At the same time, juries have given big awards in a number of talcum powder cancer lawsuits, which makes people even more worried that the costs would be high and last a long time. The probe may also look into whether stock prices were intentionally raised by keeping risk information secret. If infractions are uncovered, the company could face fines, having to restate its results, or even civil proceedings. The judgment might also lead to litigation from shareholders who want to get their money back for losses they say were caused by nondisclosures.
This study could set a standard for how corporations should tell investors about product liability concerns, especially when public health is at stake. If the SEC finds that important information was left out or misrepresented, it might lead to greater enforcement of rules on openness in other businesses where lawsuits are linked to consumer safety. Companies may be compelled to adopt a more cautious and proactive stance in revealing potential liabilities, especially those associated with carcinogenic products or class-action litigation. It could also make investors more likely to ask for clearer, more timely information on the legal dangers of the items they make money from.
OnderLaw, LLC -