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Quality Control Failures at Johnson & Johnson

In: Business and Management

Submitted By ledu
Words 702
Pages 3
In fall 1982 seven people in the Chicago suddenly died after taking Extra-Strength Tylenol capsules manufactured by McNeil Consumer Healthcare, a subsidiary of Johnson & Johnson. The product was laced with cyanide. At the time Johnson & Johnson claimed no responsibility of the poisoning tablets but it did recall all its products from shelves of drug stores and supermarkets and replaced the capsule drug with tablets. The company came very openly and declared that they would never sell unsafe products to its customer. Johnson & Johnson at the time was praised in the media for the way they handled the recall and the company became a model for how to handle an ethical crisis.
If we see the recent challenges that are happening to Johnson & Johnson is hard to believe that the company’s statement that gave back almost 30 years ago has not held true, the statement followed:
“We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality”.
Below I will go through several lawsuits that Johnson & Johnson was faced in 2011 that made the company announced recently that it had recorded 3.3 billion charges and special items for fourth quarter 2011 in order to provide a reserve for probable losses from product liability lawsuits. All the lawsuits have in common the fact that all of them are manufacturing-quality errors.
1. On December 21, 2011 was announced that Johnson & Johnson must face a lawsuit claiming it misled investors about quality control-failures at manufacturing plants that led to recalls of the popular over-the counter drug, Motrin. Supposedly, top executives made misleading statements about details of the recalls leading to stock losses after the true reasons for the recalls became public.
2....

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