New York, January 29, 2026, 21:37 EST — Market closed.
- Shares of JNJ ended the day down 0.19%, closing at $227.29, before ticking up to $227.98 in after-hours trading.
- A U.S. judge threw out a lawsuit alleging Johnson & Johnson committed fraud with its talc-bankruptcy approach.
- Attention now turns to potential appeals, U.S. drug pricing pressures, and the upcoming J&J dividend date.
Johnson & Johnson shares edged down 0.19% to close at $227.29 on Thursday. The drop came after a U.S. judge dismissed a fraud lawsuit targeting the company’s “Texas two-step” strategy, which involves moving talc liabilities into a subsidiary that then files for bankruptcy. U.S. District Judge Michael Shipp ruled the plaintiffs failed to prove they were harmed by the bankruptcy stays that paused cases from October 2021 through March 2025. J&J’s litigation head, Erik Haas, called the claims “wholly meritless.” During the session, the stock hit $230 and last changed hands at $227.98 in after-hours trading. 1
Talc has long been a major legal burden for J&J. Traders watch every court development closely, sizing up how quickly cases progress and what the final costs might end up being.
Bears face a tough spot. The stock sits close to its recent highs, and with markets closed, Friday’s open turns into the next critical moment — affecting not only J&J but the wider pharma sector too.
J&J’s effort to manage talc claims through bankruptcy has hit roadblocks. In April 2025, a U.S. bankruptcy judge dismissed a $10 billion settlement plan, prompting the company to forgo an appeal and opt to face lawsuits individually in the tort system. 2
Outside the courtroom, drugmakers are digesting new policy signals. The U.S. government released a list of 15 drugs set for Medicare price negotiations in 2028, under the Inflation Reduction Act, which authorizes price talks on selected medicines. Shares of major players like AbbVie, Pfizer, and Gilead jumped nearly 2% in after-hours trading following the announcement. BMO analyst Evan Seigerman called the expected impact manageable. 3
J&J projected 2026 sales between $99.5 billion and $100.5 billion last week, with profits per share of $11.43 to $11.63—both figures surpassing Wall Street expectations, despite around $500 million in anticipated tariffs hitting its medical devices division. CFO Joseph Wolk warned the drug-pricing agreement would shave off “hundreds of millions of dollars.” CEO Joaquin Duato told analysts growth in 2026 would outpace 2025. RBC Capital Markets’ Shagun Singh noted talc litigation concerns likely pressured the stock, while J&J also highlighted increasing biosimilar competition challenging its psoriasis blockbuster Stelara. 4
The downside remains clear. In December, a Baltimore jury hit J&J and its subsidiaries with a $1.5 billion verdict after a woman connected her cancer to asbestos in the company’s talc products. The company said it will appeal, facing more than 67,000 related lawsuits. 5
Friday’s session will reveal if investors continue to back J&J as a reliable healthcare play or pull back amid fresh legal news. The key trigger in the short term is whether plaintiffs seek to appeal Thursday’s dismissal and how quickly talc lawsuits progress in New Jersey.
Income investors should mark Feb. 24, when J&J shares trade ex-dividend. Anyone snapping up stock after that won’t get the upcoming payout. The board announced a $1.30 quarterly dividend, set to be paid on March 10. 6
