Shares of healthcare giant Johnson & Johnson edged lower in Friday's trading session, closing down 0.45% at $243.45. The move trailed the broader healthcare sector, which saw the Health Care Select Sector SPDR Fund (XLV) advance approximately 1.1% on the day. The stock's underperformance followed fresh legal developments in the long-running talc litigation saga.
Jury Awards Damages in Philadelphia Case
A Pennsylvania jury ordered Johnson & Johnson to pay $250,000 in a case centered on allegations that its talc-based baby powder contributed to a plaintiff's ovarian cancer. The verdict, delivered on Friday, February 15, 2026, comprised $50,000 in compensatory damages and $200,000 in punitive damages. The case was brought by the family of Gayle Emerson. In response, Johnson & Johnson litigation chief Erik Haas stated the company would appeal, calling the case "meritless and divorced from the science." Plaintiff attorney Leigh O'Dell said the jury held the company accountable for Emerson's death.
Johnson & Johnson has consistently maintained that its talc products are safe and asbestos-free. The company ceased selling its talc-based baby powder in the United States in 2020. However, the legal docket remains substantial, with Reuters reporting the federal talc caseload exceeds 70,000 lawsuits. Several more state court trials are scheduled, and the appeals process for existing verdicts is expected to be lengthy.
Market Context and Investor Focus
The verdict arrives as investors navigate a mixed market environment. The S&P 500 was little changed on Friday but ended the week down 1.4%, despite a tempered inflation report on Thursday. U.S. markets will be closed on Monday, February 18, in observance of Presidents Day, delaying the next opportunity for traders to react to the news.
For income-focused shareholders, Johnson & Johnson's upcoming dividend is a key date. The company has declared a dividend of $1.30 per share, with an ex-dividend date of February 24. Shareholders of record on that date will receive the payment on March 10. The ex-dividend date is the cutoff after which new buyers are not entitled to the upcoming payout.
Broader Implications and Legal Uncertainty
Each new verdict in the talc litigation serves as a data point for investors, contributing to the ongoing assessment of the company's legal liability and potential settlement risk. Legal experts note that outcomes are rarely straightforward; appeals can reduce award sizes, but future juries could also impose steeper penalties. The litigation is also complicated by battles among plaintiffs' lawyers over litigation funding, underscoring the persistent nature of the legal challenges.
Beyond company-specific news, the broader market will be watching for macroeconomic signals. The Federal Reserve is scheduled to release the minutes from its January 27-28 meeting on Wednesday, February 18, at 2:00 p.m. ET. This release has the potential to influence bond yields and could spill over into defensive stock sectors, including healthcare.
Despite Friday's decline, Johnson & Johnson shares finished the week roughly 1.4% above the prior week's close, indicating some underlying resilience. As trading resumes on Tuesday, investor attention will be split between the evolving talc litigation narrative, the upcoming Fed minutes, and the technical implications of the dividend cutoff date.
