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CEO resigns after two dozen recalls plague company

The internationally known health care company Johnson & Johnson has received much negative press in the recent months with its numerous product recalls. Since 2009 alone, more than 24 recalls have been issued. Although the company has yet to report any injuries linked to their dangerous products, it may be a matter of time before someone ingests what they thought was a safe Johnson & Johnson product. Should that happen, an injured consumer may have legal recourse against the company by filing a products liability lawsuit.

Now, its CEO has decided to resign from his position after the wave of manufacturing defects caused the large number of recalls for medications.

Some of the main manufacturing defects that lead to the recalls included: contaminated medicine, malfunctioning medicine bottles and even allegations that there were fatal doses of popular children's medications. Multiple lawsuits have been filed against the company because of these products, and a few of the company factories have been closely watched by federal officials. It seems that one of the factories was so deficient that Johnson & Johnson was forced to completely rebuild it.

The recalls have cost the company hundreds of millions of dollars in lost revenue, and they have destroyed some consumers' and analysts' trust in the company. Though the company was riding high on $65 billion in revenue, the decline in company shares and the loss of sales from recalled items has had a severe impact on Johnson & Johnson.

It also didn't help the company's image when it came to light that it hired a third party to buy all the packages of another faulty product rather than issue a recall.

Source: The Washington Post, "Johnson & Johnson CEO Bill Weldon steps down in April, after repeated consumer product recalls," Feb. 21, 2012

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