Investors relieved at $572 million verdict in opioid trial; appeal planned
The Associated Press - August 27, 2019 2:29 pm
By The Associated Press
Johnson & Johnson investors exhaled in relief Tuesday, pushing up shares about 3 percent after an Oklahoma judge imposed a $572 million verdict late Monday for its role in the nation’s opioid crisis.
Investors had been holding their breath during a trial in which the state of Oklahoma, calling J&J a “kingpin” in the epidemic, sought up to $17 billion. The much-smaller verdict, and J&J’s immediate response that the verdict was “flawed” and it will appeal, reassured investors, for now.
“The risk of a loss was already baked into the stock price,” and this verdict doesn’t set a precedent for other cases, noted Erik Gordon, an analyst and professor at University of Michigan’s Ross School of Business.