In Brief

A class action complaint alleging securities fraud at Johnson & Johnson is permitted to proceed against Colleen Goggins, former chairman of the firm’s worldwide consumer group, and current Chief Financial Officer Dominic Caruso – and by virtue of those defendants, against J&J as well – a federal judge says Dec. 19. Judge Freda Wolfson of the U.S. District Court for the District of New Jersey granted J&J’s motion to dismiss with respect to CEO William Weldon and Consumer Healthcare President Peter Luther, noting the plaintiffs had failed to prove allegations that Weldon and Luther misrepresented their awareness of OTC quality control problems and a “phantom recall” of Motrin. Wolfson says it appears “plausible” that Goggins knew of the phantom recall despite telling a congressional committee she did not, and finds Caruso may have made misleading statements during an investor call. As part of a separate suit, a J&J special committee found organizational changes, but not individual executives, at fault for the QC problems that led to extensive OTC recalls Also see "J&J Directors Find Root Causes But Little Blame For OTC Quality Issues" - Pink Sheet, 25 July, 2011..