Examining the $572M decision against Johnson & Johnson
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A judge in oklahoma ordered the company to pay five hundred seventy two million dollars the stated ask for much more seventeen billion dollars yet five hundred seventy two million dollars significant and more than twice what purdue pharma the maker of oxycontin pay to settle before the trial while j. and j. will appeal joining us here is erik. Gordon of the university of michigan's ross school of business good morning good morning david. This case was brought under her a public nuisance. Law and oklahoma has apparently a really broad public nuisance slow. What's the significance so this significance is that these public nuisance laws have have been used mostly unsuccessful for things for example like guns lead paint. It's a pretty creative approach because it allows the the plaintiffs in this case the state of oklahoma to recover a lot of money without showing how much each individual drug user was hurt now. The johnson johnson stock as i mentioned went up overnight in part we think because this verdict the dollar figure was less than it might have been but i mean let's be real real here. This is just the beginning of a series of legal fights not just for johnson and johnson. Oh this is just the first paragraph of the first page of the first chapter this many more of these and i mean do judges have to be fully guided by what's happened in oklahoma. You know each judge will decide <hes> in each jury will decide according to the law of their state and in fact. We don't even know what the final verdict is in oklahoma because johnson and johnson going to appeal this. Do you see already a lesson in this one oklahoma verdict for the industry that sells these painkillers yeah. I think there's a big lesson just because you get your product approved by the f._d._a. That gives you a defense defense against claims that your product is not safe. It is no defense against claims that you're marketing is deliberately misleading so you think there's going to be perhaps greater attention to what you say in an ad for your drug. I think if you're intelligent you're going to be very careful and maybe not get too close to the line so that it later looks as if you're trying to mislead people always good to talk to business professor erik gordon university of michigan. Thank you my pleasure today. The government's it's three month note yields one point nine percent if you get one that doesn't mature for ten long years the effective interest rate is a lot less just one point five percent set. That's the upside down world. We live in essentially bets that the economy will turn down that gap between three month and ten year rates is now the widest since two thousand seven market market strategist karen kavanagh's with voyeur investment management good morning good morning so this inverted yield curve that causes concern for some it is more inverted this morning the gap between three month interest rates and ten year government interest rates is the whitest since the the spring of two thousand seven. What does that tell you well. It's the yield curve is not really telling me that much. What's more concerning is the fact that interest rates are so so low. That's telling me that global growth is waning the fact that the yield curve is inverted and short term rates are higher than long term rates. Well that can happen thin when interest rates are so low. There's not a lot of wiggle room in fact in a matter of minutes. We'll get the latest reading on consumer sentiment and that had been running pretty strong right consumers. There's are happy because the employment market is very strong. It's the best in fifty years and now we're seeing a pickup in the housing market to with specially with lower interest rates so we expect it consumer sentiment levels remain elevated garin cavanaugh is markets registered investment management. Thank you so much. You're welcome in this marketplace. Podcast is brought to you by vistaprint small business owners now that the most important time time is now and having a business card shows how professional you are in your pocket ready to hand out is the first step with vistaprint. You can create a truly professional unique card in minutes. You can in order receive your cards in his fuse three days. You're next big. Opportunity is coming right now. All it takes. It's ten dollars to feel like you're ready to own. The now vistaprint wants you to be able to own the now in any situation which is why our listeners will get five hundred high quality custom business cards starting at nine point nine nine. Just go to vistaprint dot com slash morning. That's vistaprint sprint dot com slash morning. There is a new california law that lets cooks sell hot food from their homes maximum sixty meals per week. The hope is is this could nurture small businesses and expand the culinary landscape reporter. Larry buell has more green fuss. <unk> arrested red sauce of a red. Yes it's taco thursday at megan mcconaghy's house in the small town of westfield california about sixty miles east of l._a. Simmering pots of spicy beef even chickens sit on her kitchen. Island friends and neighbors show up at times specified on an app mcconnell. He just started doing this once a week with one entree option last week it was you attend cuisine. You can take it to go or dine at her home. No delivery and she's not charging anyone until after a trial period line to see if i'm cut out for it one to see if people are interested. She got a microenterprise home. Kitchen permit in june sales of non perishable items like bread and candy things often found at farmers markets markets have been allowed for a while and that's true in most states but this law covers meals with meat dairy and produce food must be cooked and sold on the same day no raw oysters. There's and home cooks can sell up to fifty thousand dollars worth of food per year. This restaurant permitting has major vacations for economic development as go leary is a cook cook organizer with food gnome. It started as a home restaurant network and last year lobbied state lawmakers to make home food sales legal opponents to the law included counties and environmental health groups groups who feared it could put californians at risk of foodborne illness but o'leary says it could bring culinary diversity to small towns. It's about a quarter of a million dollars to start a restaurant in the state of california on average. This restaurant permitting is going to reduce that cost to five hundred thousand bucks preah. Sanga's family also started a home kitchen. Business is in riverside county and she's finding customers through word of mouth social media and like you know just going up to people nearly heading the my car like hey do you like any food and be like yeah early. Delays okay so far. Only riverside county has opted into the new law. Other counties are looking into opting into the new law as well in riverside county california. I'm larry buell for marketplace and the man who runs arby's will become the new head of the pizza chain papa john's at arby's rob lynch led a team that was adept at generating rating social media buzz and leaning into meet with little campaigns to troll vegetarians in the new job lynch will have to face it that a classic pizza tomato basil cheese olive oil is naturally vegetarian. I'm david brancaccio with the marketplace morning report from a._p._m. American public media.