Tylenol recovered because of immediate action J&J took to shield the public and because of its prior, positive reputation.
Bailed out insurer AIG continued to inflame public opinion by

paying large bonuses to management after taking billions in taxpayer funds. The company seems to be making a comeback but images like the one shown here continue to persist.
Once opinions are formed, they are extremely difficult to change. When a brand has been tarnished, the organization can
- "Tough it out" and endure the consequences, which generally means losing a percentage of its customers
- Change its name
- Be absorbed by another organization
- Take immediate action and adopt a sustained program of brand rehabilitation
The brand rehabilitation process seeks to eliminate the cause of the negative information, while infusing positive information built on facts and a series of actions. "Fluff" doesn't cut it.
Over time, this infusion tips the scale, bringing positive perceptions to the forefront and allowing negative ones to recede. The process takes planning, management, vigilance and a willingness to address recurring commentary that may continue to appear.
Most of all, it requires consistently positive behavior that supports the brand's promise and reminds customers of the unique value it provides.