J&J shares fall but $8 billion jury award likely to be slashed

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J&J shares fall but $8 billion jury award likely to be slashed
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Johnson & Johnson shares were off more than 2% on Wednesday, a day after a U.S. ...

) shares were off more than 2% on Wednesday, a day after a U.S. jury said it must pay $8 billion in punitive damages to a plaintiff in a case involving its anti-psychotic drug Risperdal, a penalty the company and others are confident will not stand.

Gary Bradshaw, portfolio manager for the Hodges Blue Chip Equity Income fund, said he expects the total damages that J&J will pay to be “drastically reduced” on appeal. “Every pharmaceutical company needs to seriously consider if they want to litigate to verdict in the present environment, but with the settlement demands so incredibly high it’s not always clear what their alternative is,” said Barry Thompson, a partner at Baker McKenzie law firm who was not involved in the case.

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