US Appeals Courts Overturns P&G Consumer Settlement and 2 Other Dow Movers to Watch
Procter & Gamble Co. (NYSE:PG): Current price $81.00
A U.S. appeals court in Cincinnati has overturned the settlement of a consumer lawsuit regarding P&G’s Pampers “Dry Max” diapers. In the Friday action, the court called the relief obtained by most customers “illusory” as it turned aside the 2011 settlement that gave plaintiffs $1,000 per affected child, class counsel $2.73 million, “and provides the unnamed class members with nothing but nearly worthless injunctive relief.” The litigation emerged in 2010 following complaints that the diapers tended to cause a severe diaper rash, Bloomberg reports. However, the court also said that the Consumer Product Safety Commission and a Canadian agency found no connection between the product and the rash subsequent to reviewing 4,700 cases.
Johnson & Johnson (NYSE:JNJ): Current price $93.87
Johnson & Johnson has become the most recent global company to be accused of wrongdoing in China after a court there ordered that it must pay damages to a distributor in a lawsuit brought under an antimonopoly law. The Shanghai court ruling broadens the use of the vaguely worded, 5-year-old antimonopoly statute and raises the potential of action against other foreign firms. The decision comes during Chinese inquiries of possible bribery, price-fixing, and other misconduct by worldwide vendors of milk, pharmaceuticals, and other products.
UnitedHealth Group (NYSE: UNH): Current price $72.09
The No. 1 U.S. health insurer posted impressive revenue growth of 12 percent year over year in the second quarter, and one of the main reasons for the rise was revenue growth that came from its Optum business. Revenue from this division grew by 21 percent in 2012 to $8.8 billion in the second quarter of this year. The unit’s primary growth contributor was its purchase of Brazil’s counterpart to UnitedHealth, Amil Participações, in the second quarter. Amil Participações contributed 4.7 million new customers to the Optum’s business.