Johnson and Johnson faces a number of investor lawsuits

Business owners must ensure that they provide accurate and complete information to their investors or risk a lawsuit. Shareholders often feel close to their investment and expect full disclosure from the CEO or owner of a company. A Phoenix business law firm can provide legal help for those based in Arizona and ensnared in an investor dispute. Johnson and Johnson is one such company currently undergoing a lawsuit against its shareholders.

In July, an investor filed suit against the company, accusing the organization of fiduciary breaches regarding the CEO's compensation, according to the Shareholders Foundation. The plaintiff accused J&J's CEO, William Weldon, of being significantly overpaid and that he did not deserve his combined $175 million income he accumulated over the past six years. The plaintiff went on to further allege that the recalls, compliance failures and other misconduct prove that Weldon should not be paid so highly.

Bloomberg reported that a different investor lawsuit against Johnson and Johnson has been dismissed by Delaware Chancery Court Judge Leo Strine. The Synthes investors claimed that they were shortchanged when the medical device manufacturer was handed over to J&J in a $21.3 billion takeover. The shareholders' suit alleged that Hansjoerg Wyss, the chairman of Synthes, did not gain the best possible price for his company because he was only interested in gaining financial profits for his retirement needs.

"[The suits did not have enough factual basis] to suggest that Wyss forced a crisis sale of Synthes to J&J in order to satisfy some urgent need for cash," Strine said in his final decision. "The plaintiffs' argument that Wyss had somehow become an impatient capitalist is therefore strikingly devoid of pled facts to support it."

A business attorney in Phoenix can help companies that have found themselves accused of improper conduct by investors.

Categorised in: Uncategorized

This post was written by