Benzinga | Nov 2, 2021 10:50AM EDT

Johnson & Johnson, Costco Settle Lawsuits Over Recalled Sunscreen Products: Reuters

* Johnson & Johnson (NYSE:JNJ) and Costco Wholesale Corporation (NASDAQ:COST) have reached a tentative agreement to settle lawsuits over the presence of a cancer-causing substance in recalled JNJ sunscreen products, Reuters reported.

* Lawyers for the companies and plaintiffs suing over the Neutrogena and Aveeno-branded aerosol sunscreen products disclosed the settlement in the Fort Lauderdale, Florida federal court without revealing its terms.

* The Companies expect to submit the settlement for court approval by November 19. JNJ said that the settlement is not an admission of liability or wrongdoing.

* JNJ voluntarily recalled four Neutrogena aerosol sunscreen products and one from Aveeno in July after finding small amounts of benzene.

* The FDA said that it was investigating how benzene had ended up in the sunscreens following the recall.

* Related Link: CVS Health Takes Two Suncare Products Off The Shelf After Neutrogena Sunscreen Recall.

* Earlier this month, a federal judicial panel consolidated lawsuits filed nationwide against J&J and Costco, which sold the products, in the Florida court. The settlement would resolve all of the claims in the consolidated litigation, according to the filing.

* Price Action: JNJ stock closed at $163.02, and COST shares closed at $491.87 on Monday.