According to the press release dated September 21, 2010, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) Starting in April of 2008, defendants received numerous consumer complaints that Tylenol products made at a manufacturing facility in Las Piedras, Puerto Rico exhibited a "musty" odor. Despite being aware of these complaints, defendants failed to conduct an adequate investigation and failed to notify the U.S. Food and Drug Administration ("FDA") as required; (2) Defendants failed to take corrective action when foreign materials and contamination were found in a manufacturing facility in Fort Washington, Pennsylvania from May 2009 to April 2010. Similarly, defendants ignored 46 separate complaints of foreign materials in products made at that facility from June 2009 to April 2010; and (3) in late 2008, defendants learned of potential problems with one of its Motrin products. Rather than issue a public recall, defendants sent contractors out to stores to buy the product back and told the contractors not to mention any recall. After the FDA learned of this "phantom recall," it pressured defendants to publicly recall the products.
As a result of the blatant, systemic, and repeated failure of defendants to maintain proper manufacturing practices at their facilities, defendants have been forced to issue over eight separate recalls including dozens of products and hundreds of millions of individual packages. Further, defendants are now under investigation by the U.S. House of Representatives, the U.S. Senate, the U.S. Attorney's Office for the Eastern District of Pennsylvania, and multiple state Attorneys General offices. As a result of the gradual disclosure of defendants' conduct, the price of JNJ stock has declined significantly, causing damages to Plaintiff and the Class.
On December 06, 2010, the Court issued an Order Appointing Lead Plaintiff and Approving Lead Plaintiff's Selection of Lead Counsel and Liaison Counsel in this matter.
On March 11, 2011, an amended complaint against all defendants was filed by the lead plaintiff.
On December 19, 2011, the Court issued an Order granting the motion to dismiss with respect to certain defendants and denying the motion with respect to other defendants. The claims were dismissed without prejudice, and plaintiff was granted leave to file a Second Amended Complaint.
On May 22, 2012, the Court issued an Order denying Plaintiff's motion for reconsideration of the Court's December 19, 2011 Order.
On September 7, 2012, the Plaintiffs filed their second amended complaint under seal.
On April 4, 2013, the court issued a Text Order temporarily terminating Defendant's Motion to Dismiss pending settlement discussions.
On July 15, 2013, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on August 6. On November 21st, the Court issued an Order awarding attorneys' fees and expenses. This was followed immediately by an Order and Final Judgment.