Judge allows lawsuits vs Wal-Mart, J&J over shampoo

SAN FRANCISCO (Reuters) - A federal judge in New Jersey has allowed two proposed class action lawsuits to proceed against Wal-Mart Stores Inc and Johnson & Johnson over the sale of children's shampoo and baby wash allegedly containing a toxin linked to cancer.

The lawsuits, by consumers in Missouri and Nevada, claim Johnson's Baby Shampoo and Wal-Mart's Equate Tearless Baby Wash contain methylene chloride, banned by the U.S. Food and Drug Administration in cosmetics.

U.S. District Judge Dennis Cavanaugh dismissed from the lawsuits defendants Gerber Products Co, Procter & Gamble Co Distributing LLC, MZB Personal Care and MZ Berger & Company in two separate orders, filed on Monday and Thursday, showed.

The judge also dismissed unjust enrichment claims against Wal-Mart and Johnson & Johnson, but let the consumers sue the two companies for consumer protection act violations and breaches of implied warranty under Missouri and Nevada laws, the orders showed.

Wal-Mart and Johnson & Johnson could not be reached immediately for comment.

The two cases are among four actions filed last year by consumers nationwide against manufacturers and distributors of children's personal care products in New Jersey, where Johnson & Johnson is headquartered.

The cases are Vercellono v. Gerber Products Co et al., Case No. 09-2350, and Levinson v. Johnson & Johnson Consumer Cos Inc, Case No. 09-3317, U.S. District Court of New Jersey.

(Reporting by Gina Keating and Alexandria Sage; editing by Andre Grenon)