Johnson and Johnson plunges after plan to settle talc-related lawsuits falls apart

Johnson & Johnson shares fell the most in five years after the company’s plan to settle thousands of talc-related lawsuits through bankruptcy was shot down in court.

The ruling means J&J will have to fight roughly 60,000 claims brought by women who say the company’s hallmark baby powder caused ovarian cancer and other, similar gynecological diseases in courts across the country. It may also have to set aside far more than the $9 billion it had earmarked for victims.

J&J’s shares dropped as much as 5.6% in New York on Tuesday, marking the biggest intraday loss since March 2020.

“Nobody saw this coming,” said Samir Parikh, a law professor at Wake Forest University who has been tracking J&J’s baby powder litigation. “This is not good news for the company and its investors.”

The number of outstanding claims could balloon to more than 90,000, Bloomberg Intelligence analyst Holly Froum wrote.

About 70% of the plaintiffs are likely to settle, according to Froum, which could cost J&J about $11 billion, she said.

trump to hold meeting today on possible investors to buy tiktok as deadline looms

President Donald Trump will hold a meeting today with aides about possible investors who could buy a stake in TikTok, a deal that could potentially stop the social media site from being banned in the United States.

The details of the meeting were confirmed by a person familiar with the situation who spoke on condition of anonymity to discuss internal deliberations.

There has been uncertainty about the popular video app after a law took effect on Jan. 19 requiring its China-based parent, ByteDance, to divest its ownership because of national security concerns. After taking office, Trump gave TikTok a 75-day reprieve by signing an executive order that delays until Saturday the enforcement of the law requiring a sale or effectively imposing a ban.

Among the possible investors are the software company Oracle and the investment firm Blackstone.

Likely to attend the Oval Office meeting with Trump on Wednesday are Vice President JD Vance, Commerce Secretary Howard Lutnick, White House national security adviser Mike Waltz and Director of National Intelligence Tulsi Gabbard.

Mercedes considers pulling least expensive cars from united states over trump tariffs

Mercedes-Benz Group AG is considering withdrawing its least expensive cars from the U.S. because President Donald Trump’s auto tariffs would likely make their sales economically unfeasible, according to people familiar with the matter.

The German automaker is mulling cutting sales of more entry-level models as part of broader tariff contingency plans, the people said, declining to be identified because the deliberations are private. Trump’s 25% duties are scheduled to take effect this week.

Mercedes hasn’t made a final decision and may still shift course depending on how the levies are implemented, the people said. A lack of clear guidance from Washington is leaving executives frustrated and unsure how to respond, they said. Mercedes aims to maximize its sales in the U.S., a company spokesperson said, declining to further comment. Mercedes is among manufacturers navigating a worsening trade war that risks hurting their sales and disrupting supply chains.

Aston Martin Lagonda Global Holdings Plc and Ferrari NV plan to raise prices for some of their cars in the U.S., with Volkswagen AG considering expanding local manufacturing. Stellantis NV’s Chairman John Elkann met with Trump on Monday, and the Chrysler parent is part of a group of automakers making a last-ditch effort to sway his administration.

Reports compiled from The Associated Press and Bloomberg.