Kenvue Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
Kenvue, previously the consumer health division of Johnson & Johnson, went public with an IPO in May 2023, offering around 171,812,560 shares of its common stock to the public at a price of $22.00 per share. The IPO was based on the premise that the Company and its products, including phenylephrine (“PE”), were effective.
However, shortly after the IPO, an FDA panel unanimously declared that oral forms of PE were ineffective in relieving nasal congestion. They published these findings in a document titled “Efficacy of Oral Phenylephrine as a Nasal Decongestant.” The FDA revealed that it had been evaluating data on the effectiveness of oral PE since December 2007.
Following this news, Kenvue’s stock saw a decline of $1.01 per share, amounting to a 4.58% drop, closing at $21.06 on September 12, 2021, causing financial harm to investors. The stock price did not recover to the IPO price of $22.00 thereafter.
The class action complaint filed in response alleges that the Registration Statement made material false and misleading statements and omitted crucial adverse information about the Company’s business, operations, and prospects. Specifically, the complaint asserts that: (1) Kenvue was facing potential challenges due to known concerns about the efficacy of phenylephrine; (2) the IPO did not address risks associated with the efficacy of phenylephrine, which had been in question since at least 2007; (3) while the Company disclosed general litigation risks, it did not specify the risk related to potential legal action arising from unfavorable findings about the effectiveness of phenylephrine; and (4) as a result, the positive statements made by the Defendants about the Company’s business, operations, and prospects were significantly misleading and lacked a reasonable basis throughout the relevant time period.
