A shareholder derivative complaint was filed against nominal Defendant Johnson & Johnson (“J&J”) on June 24, 2010. J&J engages in the research and development, manufacture, and sale of various products including such widely-used medications as Tylenol, Benadryl and Motrin. The complaint alleged that Defendants engaged in an improper course of conduct concerning inadequate manufacturing processes and policies at Company facilities which led to multiple recalls of some of the Company’s most important products. On July 11, 2012, Stipulation and Agreement of Settlement was filed. On October 26, 2012, the Honorable Freda L. Wolfson granted final approval to the Stipulation and the Settlement, finding that the Settlement and terms of the Stipulation are fair, reasonable and adequate, and in the best interests of J&J and J&J shareholders. Under the Settlement, J&J agreed to adopt great corporate governance and compliance reforms to help with the early identification, upward reporting, and robust quality control of J&J drugs and devices.
