Overview

Alex Gorsky served as Chairman and CEO of Johnson & Johnson from 2012 to 2022; overseeing the pharmaceutical and consumer products giant during some of its most controversial periods. Under Gorsky's leadership; J&J faced more than 40;000 lawsuits alleging its talcum powder products (including baby powder) caused ovarian cancer and mesothelioma; with internal documents revealing the company had known about asbestos contamination in its talc products dating back to the 1970s. Rather than settle the claims transparently; J&J employed the controversial "Texas Two-Step" bankruptcy maneuver in 2021; creating a subsidiary called LTL Management; transferring the talc liabilities to it; and then filing that subsidiary for bankruptcy; effectively attempting to cap payouts to cancer victims through the bankruptcy system. Federal courts rejected this scheme twice; calling it an abuse of the bankruptcy system. J&J ultimately offered an $8.9 billion settlement. Gorsky also oversaw J&J's role in the opioid crisis; the company was found liable in the landmark 2019 Oklahoma opioid trial for its role in fueling the epidemic through its Janssen subsidiary; which grew poppies in Tasmania and supplied raw materials to opioid manufacturers. J&J agreed to a $5 billion opioid settlement. Before becoming CEO; Gorsky was personally named in a qui tam whistleblower lawsuit alleging he participated in an illegal kickback scheme to promote the antipsychotic drug Risperdal while he was VP of sales at Janssen. J&J paid $2.2 billion to settle Risperdal marketing fraud charges. Gorsky earned over $200 million in total compensation during his tenure while the company faced tens of billions in legal liabilities from harming consumers.

Key Affiliations

Controversies & Concerns

Related Investigations (2)

Sources & Documentation

3 documented sources from official records, investigations, and reports