J&J Beats ERISA Appeal Over Talc Asbestos Scandal Stock Drop (1)

Johnson & Johnson defeated a Third Circuit appeal Wednesday by workers who say they lost retirement savings by investing in employer stock that was embroiled in scandal.

The proposed class action accuses J&J of concealing from the public the presence of cancer-causing asbestos in their products, leading to a 10% drop in stock price when reports surfaced in 2018. By allowing workers to invest their retirement savings in artificially inflated company stock, J&J and top executives violated the Employee Retirement Income Security Act, workers claim.

The plaintiffs argued that the executives should’ve either made public disclosures to correct J&J’s artificially ...