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Kenvue Shares Fall After Appeals Court Revives Tylenol Autism Lawsuits
Shares of Kenvue Inc. (NYSE:KVUE) fell on Monday after a federal appeals court revived hundreds of lawsuits alleging the company failed to warn consumers that its Tylenol pain reliever could cause autism in children whose mothers used the medication during pregnancy.
Court Reverses Dismissal
A three-judge panel in New York ruled that a lower court had made an error in blocking the cases from proceeding, according to a report from Bloomberg. The appeals court concluded the district court had "exceeded its discretion" by excluding the testimony of three expert witnesses for the plaintiffs.
The decision reverses a 2023 ruling by a Manhattan federal judge that had blocked approximately 500 cases from going to trial against Kenvue, a consumer health spinoff from Johnson & Johnson. The case has now been remanded back to the lower court for further proceedings.
AdPotential Financial Impact
The revival of the litigation represents a significant legal setback for Kenvue, potentially exposing the company to thousands of new lawsuits. In response to the news, Kenvue shares traded down by 1% during Monday's session.
Analysts have previously highlighted the substantial financial risk associated with this litigation. A March estimate from Bloomberg Intelligence suggested that settling the Tylenol-related lawsuits could ultimately cost Kenvue billions of dollars.