1. Johnson & Johnson’s Tylenol recall
One of the most well-known recalls happened in 1982, and it was issued for a basic over-the-counter drug that we all have in our homes: Tylenol.
The cost of the recall was $100 million, and if we adjust it to inflation and today’s prices, the cost would be around $250 million. Maybe it doesn’t sound like such a big deal in terms of money, but this event had an extremely big impact.
Sometimes this one is called “the recall that started them all” because at that time Johnson & Johnson did what they should have done right and set a standard that should be followed by other corporations when something like this happens.
The aftermath was disastrous. Seven people in the Chicago region died after taking cyanide-laced Extra-Strength Tylenol. J&J recalled 31 million bottles of Tylenol. After this, the company recovered in a few months.
