N.J. Federal Court Tosses Shareholder Suit Against J&J, Says Plaintiff Needs to Seek Pre-Suit Demand
October 9, 2019
NEWARK, N.J. –– A New Jersey federal court has dismissed without prejudice a shareholder suit accusing Johnson & Johnson of withholding information regarding its talcum powder products, concluding that the New Jersey Business Corporation Act does not support a futility exception to pre-suit demand.
In a Sept. 27 opinion, the U.S. District Court for the District of New Jersey found that the plaintiff should have complied with a requirement to make a pre-suit demand on the company’s Board of Directors before filing the underlying lawsuit.
The underlying lawsuit was filed by a Johnson & Johnson shareholder, who contended that the …