Investors Sue J&J Board Over $78M In Settlements

Law360, New York (May 3, 2011, 8:40 PM EDT) -- Johnson & Johnson shareholders filed a derivative suit Monday in New Jersey claiming the board of directors should be held liable for the $78 million the company paid to settle civil and criminal suits over Foreign Corrupt Practices Act violations and kickbacks for contracts in Iraq.

The suit says the board failed to implement an internal controls system for detecting violations of the FCPA and breached their duties to shareholders by not disclosing the nature of the offenses.

"Defendants' failure to cause J&J to implement an...
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