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A group of Johnson & Johnson shareholders, including unions and pension funds, is suing the company’s board of directors. The plaintiffs allege that J&J’s directors ignored “red flags” in advance of costly and embarrassing defective product recalls, leading to hundreds of millions of dollars in losses as well severe damage to the company’s reputation.

This year alone, J&J recalled more than 40 different types of medicine due to contamination or mislabeling. Those recalls are in addition to the recall of hip implants by J&J subsidiary DePuy Orthopaedics and the so-called phantom recall of defective Motrin pain medicine in which subsidiary McNeil paid contractors to secretly buy the defective medicine.

J&J is already facing the prospect of millions of dollars in defective product injury damages stemming from product liability lawsuits filed in relation to its many defective product recalls over the past two years. This shareholder lawsuit argues that J&J’s directors and chief executives mismanaged the company by “permitting and fostering a culture of systemic, calculated and widespread legal violations.”

Shares in Johnson & Johnson fell 15¢ Monday, and the company’s share price has lost 3.2% since the beginning of 2010. J&J is also currently under federal government investigation to determine whether the company engaged in illegal off-label marketing of pharmaceuticals and medical devices.

If you have been injured by a Johnson & Johnson product, such as Motrin, Children’s Tylenol, or DePuy ASR hip implants, please contact the product liability attorneys of Long & Long today to discuss your legal options.

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