Saturday, class-action law firm Hagens Berman said it is investigating pharmaceutical giant Johnson & Johnson (JNJ) over claims that the company defrauded investors by not disclosing that some of its consumer products, including Tylenol, may be contaminated.
Reports claim Johnson & Johnson knew of the contamination issue, which is linked to health issues in some consumers, since 2008 but neglected to fully disclose the problem to shareholders and the general public until today after pressure by federal regulators, a press note from Hagens Berman stated. The statement also said Johnson & Johnson recalled several brands of over-the-counter products from store shelves including Tylenol, Motrin, Rolaids and Benadryl.
The U.S. Food and Drug Administration issued a Warning Letter to the company for failing to disclose in September 2009 contamination of the products by 2,4,6-tirbromoanisole, a chemical used as a fungicide, wood preservative, and flame retardant. Johnson & Johnson has admitted that the effects of tirbromoanisole on humans have not been heavily studied. Consumers using the tirbromoanisole-affected products have reported nausea, vomiting, and diarrhea, Hagens Berman says.
Hagens Berman partner Reed Kathrein said, "We are surprised that a company that has been praised in the past for confronting a crisis with complete honesty and quick action has now chosen to hide the facts from the public and the regulators and hope the problems would disappear. We hope to get to the bottom of the story on behalf of the investors we represent."
JNJ closed Friday's trading at $64.56, down $0.54 or 0.83%, on a volume of 21 million shares on the New York Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.