Law.com - J&J Investors' Class Action Suit Filed in Wake of Company's 'Phantom Recall': "A Johnson & Johnson investor has lodged a putative class action against the pharmaceutical giant, alleging it defrauded stockholders by attempting to cover up shoddy manufacturing and business practices -- including a covert recall of substandard products.
According to a complaint in U.S. District Court in Newark, J&J and its subsidiary, McNeil Consumer Healthcare, secretly contracted other parties to do a quiet store-by-store buyback of Motrin products in which defects had been discovered, rather than contact the Food and Drug Administration.
That 'phantom' recall as well as the recall of other J&J products is also the subject of a congressional investigation. At a hearing on Sept. 30, J&J Chairman and CEO William Weldon conceded that the company did not maintain high quality control standards at certain facilities.
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