Quality Control on Products

Quality Control on Products

McNeil, a division of Johnson & Johnson. had significant problems with quality control on its products, including infant Tylenol and Motrin. Worn equipment in plants resulted in metal flakes in some of the company’s products. The result was federal sanctions and a series of lawsuits by users of the products. The shareholders brought suit against the directors for their failure to supervise the company’s activities and facilities. Can the shareholders sue the directors for these reasons? Who recovers if they can sue? What theories would the shareholders use? [Monk v Johnson & Johnson. 2011 WL 6339824 (D. N.J. 2011)]

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