Kenvue faces lawsuit deadline over IPO phenylephrine claims

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By Robert Fofana

Kenvue faces lawsuit deadline over IPO phenylephrine claims
© Reuters.

Investors in Kenvue Inc . (NYSE:) are facing a December 8, 2023, deadline to participate in a lawsuit alleging the company made false statements about the efficacy of phenylephrine in its initial public offering (IPO) documents. The legal action, which centers on potential violations of securities laws, was initiated following concerns that date back to at least 2007 regarding the drug’s effectiveness.

The Shareholders Foundation, a non-legal entity that monitors shareholder litigation, has emphasized the importance of the upcoming deadline for those who have invested more than $250,000 in Kenvue’s stock. These shareholders were initially advised to seek guidance by November 13, 2023, if they wished to join the lawsuit filed on October 9, 2023. The complaint accuses Kenvue of issuing materially false statements in its IPO registration statement during the company’s market debut in May 2023.

The allegations highlight that Kenvue’s IPO materials may have omitted significant information about the long-standing doubts over phenylephrine and the potential litigation risks associated with these challenges. This has raised questions about the transparency and accuracy of the public statements made by Kenvue during the IPO process.

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