Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Kenvue Inc. (“Kenvue”) (NYSE: KVUE) common stock (1) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Offering Documents”) issued in connection with Kenvue's initial public offering (“IPO”) on or around May 8, 2023; and/or (2) pursuant and/or traceable to the registration statement and related prospectus (collectively, the “J&J Registration Statement”) issued in connection with Johnson & Johnson’s (“J&J”) exchange offer in or around August 2023.
Kenvue was formerly J&J’s consumer health segment prior to its IPO in May of 2023. Among its products, Kenvue markets and sells numerous over-the-counter products containing phenylephrine (“PE”) for the treatment of congestion, sinus aches, and cold and flu symptoms.
The complaint alleges that, in the Offering Documents and J&J Registration Statement, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Kenvue faced potential headwinds as a result of confirmed concerns about the efficacy of products containing PE, which it knew or should have known; (2) Kenvue did not discuss risks relating to the efficacy of PE in its IPO, the utility of which had been questioned since at least 2007; (3) while the company disclosed risks relating to litigation, it did not disclose specific risk relating to potential litigation arising from adverse findings on the efficacy of PE; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On August 26, 2024, Defendants filed a Motion to Dismiss the Amended Complaint, and the Court denied Defendants’ Motion on March 24, 2025. On April 7, 2025, Defendants filed a Motion for Reconsideration, which was denied on November 4, 2025. This action is in the discovery phase and is ongoing.
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