Should Investors Be Scared About This Johnson & Johnson Probe?
Johnson & Johnson (NYSE:JNJ) revealed it is the target of two separate government probes in its annual regulatory report to the Securities and Exchange Commission on Friday. One federal probe is related to the ASR XL hip device, which was recalled in August of 2010. The other probe is in regards to J&J’s marketing practices of its Gynecare Prolift surgical mesh.
Many of the artificial hip devices in question failed after only several years of use, despite having an expected life of 10 to 20 years. The ASR XL hip devices were manufactured by DePuy Synthes, a subsidiary of J&J. J&J disclosed that federal prosecutors have requested documents regarding possible false claims made to federal healthcare programs by its subsidiary.
California’s attorney general is leading another probe into J&J’s marketing practices regarding its Gynecare Prolift vaginal mesh implant. The investigation is looking into the improper marketing of the surgical mesh for urogynecological and hernia uses.