Johnson & Johnson Settles Ohio Opioid Cases for $20.4 Million to Avoid Federal Trial Does this mean anything for the pharmaceutical giant's long-term outlook?
Johnson & Johnson (NYSE:JNJ) made news in late August when a state judge in Oklahoma found the pharmaceutical giant guilty of deceptively marketing its opioid medications to customers. The verdict was seen as a hallmark ruling for the pharmaceutical sector. That, combined with Purdue Pharma declaring bankruptcy due to the $12 billion settlement it's facing, has many investors worried the door has been opened to similar, perhaps much larger, fines for other companies in the opioid market.
Last week, Johnson & Johnson provided a reassuring piece of news to investors when it announced that it had settled two Ohio opioid cases for a total sum of $20.4 million. In doing so, the pharmaceutical giant will be able to dodge a major federal trial that could hold the pharmaceutical industry liable to the ongoing opioid addiction epidemic occurring in the U.S.