$550 million awarded in talcum lawsuit
ST. LOUIS -- A St. Louis jury has awarded $550 million to nearly two dozen women who claimed asbestos in Johnson & Johnson's talcum powder caused their ovarian cancer.
Jurors announced the award for compensatory damages Thursday in a lawsuit that included 22 plaintiffs. The St. Louis Post-Dispatch reports this case differed from five previous lawsuits against the company because it focused on claims that asbestos allegedly found in the baby powder caused the cancer.
The jury has yet to decide on punitive damages.
Plaintiffs' lawyer Mark Lanier told the jurors during closing arguments Wednesday that they were the first to see documents showing that Johnson & Johnson knew its products contained asbestos and didn't warn consumers.
Johnson & Johnson said in a statement it was disappointed in the verdict but would not comment further until the punitive damages are announced.
-- The Associated Press
Papa John's founder resigns after slur
Papa John's founder John Schnatter resigned as chairman of the company's board late Wednesday, hours after apologizing for using a racial slur during a May conference call with a marketing agency.
Schnatter, a donor to Donald Trump's presidential campaign who stepped down as his company's chief executive in January after he said that National Football League player protests were hurting his pizza sales, was the subject of a news report in the business publication Forbes that documented his use of the slur. He confirmed the allegation in his apology.
Forbes reported that Papa John's executives were on a call with the marketing agency Laundry Service when Schnatter made the remark. The group was going through a role-playing exercise in preparation for public-relations challenges. Schnatter was asked how he would separate himself from racial offensiveness online and responded by "downplaying the significance of his NFL statement," Forbes reported.
"Colonel Sanders called blacks n * * * * * s," Schnatter reportedly said.
-- The Washington Post
FDA ties dog heart disease to legume diet
Pet food containing peas, lentils, other legumes and potatoes might be causing heart disease in dogs, the U.S. Food and Drug Administration said in a warning to pet owners.
The FDA said Thursday that it has received "highly unusual" reports about canine dilated cardiomyopathy, which can cause an enlarged, weakened heart and eventual heart failure in dogs. The cases occurred in breeds -- such as golden and Labrador retrievers, a whippet, a Shih Tzu, a bulldog, and miniature schnauzers -- that aren't genetically prone to the disease, but that ate certain pet foods containing legumes or potatoes as their main ingredients.
The FDA said it is already in contact with pet food manufacturers that make the foods, without naming them.
The agency said pet owners and veterinarians should report any canine heart disease cases in dogs not predisposed to the disease through the FDA's electronic safety reporting portal.
-- Bloomberg News
Capital One leads bids for Walmart cards
Walmart Inc. is considering moving its branded credit-card business to Capital One Financial Corp. from Synchrony Financial as it seeks to expand its mobile payments offering, according to people familiar with the matter.
The world's largest retailer has narrowed the competition for its credit-card partnership to bids from the two lenders, said the people, who asked not to be identified because no decision has been announced. The negotiations are still ongoing, but the retailer is seeking a partner that can support its aspirations for Walmart Pay, the people said.
Co-brand and private label credit cards are a lucrative business for banks and retailers seeking to monetize a cardholder's loyalty to a certain brand or store. The Walmart card is the largest program in the U.S. up for renegotiation between this year and next year, according to analysts at Susquehanna Financial Group.
-- Bloomberg News
Delta to increase fares to offset fuel costs
Delta Air Lines Inc. is looking to offset the rising price of jet fuel by raising fares and cutting some flights.
A benchmark gauge of pricing power will climb as much as 5.5 percent in the third quarter, the No. 2 U.S. carrier said in a statement Thursday as it reported second-quarter earnings, implying higher fares. Delta also will take some seats off the market by paring "underperforming capacity" and said it continues to look for more places to trim.
Delta is rushing to offset the pain from pricier jet kerosene, which drove a 33 percent increase in the airline's second-quarter fuel costs and prompted the company to cut its annual profit forecast. While a strong domestic economy has boosted travel demand, there is typically a six- to 12-month lag before airlines can raise fares to help offset higher spending.
Second-quarter adjusted profit rose to $1.77 a share from a year earlier, beating the $1.72 expected by analysts. The carrier cut its outlook for the period last month from $2 a share. Adjusted revenue increased 8.2 percent to $11.6 billion.
-- Bloomberg News
Mexico to cancel $1.2B U.S. copter deal
MEXICO CITY -- President-elect Andres Manuel Lopez Obrador said Wednesday that he will cancel the pending purchase by Mexico's navy of eight armed Lockheed Martin MH-60R helicopters from the U.S. government.
Lopez Obrador mentioned scrapping the planned $1.2 billion deal as an example of extensive cost-cutting measures his government will undertake.
"That purchase is going to be canceled because we can't make that expense," he said during a wide-ranging news conference.
In April, the U.S. State Department approved the sale of the helicopters, saying it would improve the security of a strategic regional partner. In its statement then, it said the helicopters would help Mexico fight criminal organizations.
-- The Associated Press
Business on 07/13/2018