Kenvue Inc.

Kenvue was previously the consumer health division of Johnson & Johnson. In May 2023, Kenvue conducted an IPO, offering approximately 171,812,560 shares of Kenvue common stock to the investing public at $22.00 per share. The IPO was predicated on the Company and its products, including phenylephrine (“PE”) being viable.

Soon after the IPO, however, an FDA panel unanimously voted to declare oral formulations of PE ineffective for relieving nasal congestion and published its findings in a document called “Efficacy of Oral Phenylephrine as a Nasal Decongestant.” The FDA disclosed that it had been evaluating data on the efficacy of oral PE since December of 2007.

On this news, Kenvue’s stock declined by $1.01 per share, or 4.58%, to close at $21.06 on September 12, 2021, injuring investors. It has not gone above the $22.00 IPO price since.

The complaint filed in this class action alleges that the Registration Statement contained materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Kenvue faces potential headwinds as a result of confirmed concerns about the efficacy of phenylephrine, which it knew or should have known; (2) Kenvue did not discuss risks relating to the efficacy of phenylephrine 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 phenylephrine; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.