Johnson & Johnson has been sued by an AIDS treatment group claiming that J&J did not provide “discounts required by federal law for medicines used by nonprofit charities that provide treatment for people with HIV.”
Johnson & Johnson has had such an awful recent history that it is hard to put anything past them. But I suspect they – rightly or wrongly – believe they have a defense. Because when you are down on your luck, as J&J clearly is from a PR standpoint, you don’t sanely pick out the AIDS Healthcare Foundation as an enemy. I’m assuming there were settlement negotiations before this lawsuit. J&J would be crazy not to settle this case unless they were pretty confident they could win. Because even if they are right, they are taking another PR bath with this lawsuit. Five years ago, J&J would have gotten the benefit of the doubt. But that presumption of innocence is gone for doctors, patients and investors.