Question

In: Operations Management

1) Read the Johnson & Johnson article and answer the following: a) was the outcome of...

1) Read the Johnson & Johnson article and answer the following:

a) was the outcome of this case fair?

b) The Jury awarded a significant amount of punitive damages in this case. Should tort reform laws apply here? If so, why? If not, why?

Johnson & Johnson was ordered Thursday to pay $4.69 billion to 22 women and their families who had claimed that asbestos in the company’s talcum powder products caused them to develop ovarian cancer. A jury in a Missouri circuit court awarded $4.14 billion in punitive damages and $550 million in compensatory damages to the women, who had accused the company of failing to warn them about cancer risks associated with its baby and body powders. Johnson & Johnson, the maker of Johnson’s Baby Powder, said it was “deeply disappointed” in the verdict and planned to appeal. The company is facing more than 9,000 plaintiffs in cases involving body powders with talc, according to a regulatory document filed this spring. After a six‑week trial, the jury in St. Louis deliberated over the compensatory damages for eight hours but decided on the punitive damages in roughly 45 minutes, said Mark Lanier, a lawyer for the women. Six of the women have died; almost all of the rest, along with friends and relatives, were in the courtroom on Thursday. One of the plaintiffs is undergoing chemotherapy and was too ill to attend, Mr. Lanier said. “There were people crying, people hugging,” he added. “It’s been quite an emotional scene.” Mr. Lanier said Johnson & Johnson had spent 40 years covering up evidence of asbestos in some of its talcum‑based products and should mark those products with warning labels or focus on powders made with cornstarch. Subscribe to The Times You have 4 free articles remaining. The punitive damages are among the largest ever awarded in a product liability case, he said. Shares of Johnson & Johnson fell 1.4 percent in early trading Friday. 8/10/2018 Johnson & Johnson Told to Pay $4.7 Billion in Baby Powder Lawsuit

Johnson & Johnson called the verdict “the product of a fundamentally unfair process” that combined 22 women with few connections to Missouri into a single group of plaintiffs in St. Louis. The company “remains confident that its products do not contain asbestos and do not cause ovarian cancer and intends to pursue all available appellate remedies,” it said in a statement. The company has said concerns about talc’s being linked to cancer are based on inconclusive research. Asbestos is a carcinogen that sometimes appears in natural talc but was stripped from commercial talc products in the 1970s, according to the American Cancer Society. And according to the National Cancer Institute, claims that talc used for feminine hygiene purposes can be absorbed by the reproductive system and cause inflammation in the ovaries are not supported by “the weight of evidence.” Plaintiffs in talc cases have approached litigation in smaller groups instead of suing Johnson & Johnson en masse. The risky strategy allows earlier plaintiffs to send signals about legal tactics and their award amounts to women who bring cases later. Suing in clusters also maximizes the emotional effect of the women’s stories on juries, Mr. Lanier said. “It’s easier to get justice in small groups,” he said. “In small groups, people have names, but in large groups, they’re numbers.” The first talc trial was in 2013 in Federal District Court in South Dakota. A jury found Johnson & Johnson negligent but did not award damages to the plaintiff. Several other cases have involved sizable damages, including a $417 million verdict reached by jurors in Los Angeles County Superior Court last year. The plaintiff in the Los Angeles case has since died, and the verdict was overturned and a new trial granted. Johnson & Johnson, which has successfully appealed a number of talc cases, said in its statement on Thursday that “the multiple errors present in this trial were worse than those in the prior trials which have been reversed.”

Solutions

Expert Solution

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****

a) was the outcome of this case fair?

I do not believe this is a realistic scenario. I know six people have died and they claimed that asbestos in the company's talcum powder products has caused ovarian cancer to develop. But there is no proof to show that the products of Johnson and Johnson contain asbestos that can cause ovarian cancer and must seek all possible options for appeals. "The arguments, according to the National Cancer Institute, that talc used for feminine hygiene purposes can be ingested by the reproductive system and induce inflammation in the ovaries are not backed by" the weight of evidence.

b) The Jury awarded a significant amount of punitive damages in this case. Should tort reform laws apply here? If so, why? If not, why?

Tort reform applies to legislation enacted on a state-by-state basis that impose limitations or caps on the type or volume of damages that can be paid in cases involving personal injury. In this case the punitive penalties are applicable under tort reform legislation. Yet there's no hard evidence to support the argument. The Johnson and Johnson are continuing their attempts to disprove a causal association between ongoing consumption of talc drug and ovarian cancer. Johnson & Johnson's $4.7 billion case got the sixth most costly verdict on drug flaws in U.S. history. I assume this decision is taken by the jurors based on the emotional feeling that six people have died. But the hard proof isn't adequate.

****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****


Related Solutions

QUESTION Read the article below and answer the questions JOHNSON BOOKS $116 MILLION LOSS Johnson West...
QUESTION Read the article below and answer the questions JOHNSON BOOKS $116 MILLION LOSS Johnson West Africa  has registered an after-tax loss of $116.4 million for the full-year ended September 2018, down from a profit of $267 million even as chief executive Jackson Atinga quit the firm. Mr Atinga told Business Daily on phone that on Thursday was his last day in office, with the company having already settled on former head of corporate services Margaret Ombolo as his replacement. “I...
Read the following article in the link below and answer the following questions ARTICLE (BELOW): Changes...
Read the following article in the link below and answer the following questions ARTICLE (BELOW): Changes to the elevational limits and extent of species ranges associated with climate change www.uam.es/personal_pdi/ciencias/jspinill/BIBLIOGRAFIA_CASO/ECOL_2005_8_1138_1146.pdf ========================================================================================= 1. What is the larger ecological issue that the authors would like to address (found in the first paragraph of the introduction)? 2. What is the specific study question and/or hypothesis (or hypotheses) addressed in the paper? 3. What did the authors do? Briefly (in 2 sentences max) describe...
Read the article Entrepreneurial Culture and answer the following questions using the article and a minimum...
Read the article Entrepreneurial Culture and answer the following questions using the article and a minimum of two additional outside sources as references. Please be sure to cite your source 1. What role does organizational culture play on a company and its corporate entrepreneurial goals? 2. Why is the study of organizational culture important to organizations? 3. How may a company's culture affect (help or hinder) its ability to strategically assess its performance? 4. Discuss your own thoughts and ideas...
Read The Atlantic article, "The Owl Thieves of Sweden." Answer the following questions: 1 Explain what...
Read The Atlantic article, "The Owl Thieves of Sweden." Answer the following questions: 1 Explain what has caused Swedish criminals to take on "more outlandish crimes." Use examples. (1 paragraph) 2 What are some benefits of an economy going cashless? (1 paragraph) Do you think it's practical for a country to go completely cashless? What do you think are some of the benefits of still using cash? (Consider the transactions that may require cash.) Answer these questions in a short...
Read the following article and answer the questions. Discussion 1 California Approves Statewide Rent Control to...
Read the following article and answer the questions. Discussion 1 California Approves Statewide Rent Control to Ease Housing Crisis - The New York Times. Read below article attached on California rent controls and respond to the following questions. 1. Explain the purpose of rent control and the intended effect on California consumer and suppliers of rental property. Does rent control achieve its purpose? 2. How do rent control policies alter incentives for consumers and producers in the market for rental...
Read the following article, relating to monetary policy and inflation in Japan, and answer the following...
Read the following article, relating to monetary policy and inflation in Japan, and answer the following questions. TOKYO (Kyodo) -- The Bank of Japan on Wednesday cut its inflation forecasts for the three years through March 2021, putting its elusive target of 2 percent price gains farther from reach. As widely expected, the central bank's Policy Board also decided after a two-day meeting to keep interest rates at their current ultralow levels as risks including trade friction between the United...
Read the article below and answer the questions (article should be 1 page, 11-point font). The...
Read the article below and answer the questions (article should be 1 page, 11-point font). The article is provided via the link below https://web.natur.cuni.cz/zoologie/biodiversity/prednasky/EvolucniGenetika/clanky_2016/Transgenerational-epig-inheritance-Science-2016.pdf Primary Paper HW assignment guideline Your primary paper consists of three parts: 1. In your own words, state the essential take-home message of the paper assigned. --Here you should briefly mention what was known about this topic before this paper was published --Then state what the aim/goal/purpose of this published study was. In other words, what...
READ the article and answer the following question: "What are the advantages and disadvantages of nations...
READ the article and answer the following question: "What are the advantages and disadvantages of nations using agricultural subsidies?" ARTICLE: RAJPURA, India—The Indian government’s price controls have created an unsustainable sugar glut, and now New Delhi wants to dump it on the already struggling world market for the commodity. India is the world’s second-largest producer and biggest consumer of sugar. Thanks to strict controls of imports, exports and prices, the country generally produces all it needs. In a holdout from...
Read the article “The poor and the rich” from The Economist and answer the following questions....
Read the article “The poor and the rich” from The Economist and answer the following questions. Why is it that in the Solow neoclassical growth model “as the stock of capital expands, growth slows, and eventually halts”? Explain. What does the empirical evidence tell us about the effect of Government policies on economic growth? Give some examples of how, according to the article, different Government choices have different implications for economic growth. What are possible explanations for the extraordinary economic...
Please read through the article below and answer the question at the end of the article....
Please read through the article below and answer the question at the end of the article. Strategy as a Wicked Problem Over the past 15 years, I’ve been studying how companies create strategy—the most important responsibility of senior executives. Many corporations, I find, have replaced the annual top-down planning ritual, based on macroeconomic forecasts, with more sophisticated processes. They crunch vast amounts of consumer data, hold planning sessions frequently, and use techniques such as competency modeling and real-options analysis to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT