Kenvue Inc. (KVUE) Made False and Misleading Statements in its Registration Statement in Support of its IPO
A shareholder filed a class action lawsuit on behalf of persons who purchased or otherwise acquired Kenvue Inc. (NYSE: KVUE) securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with Kenvue’s initial public offering (“IPO”). Kenvue Inc. operates as a consumer health company worldwide.
According to the complaint, the registration statement failed to warn about the commercial viability of products containing phenylephrine (“phenylephrine” or “PE”), which was being investigated by the Food and Drug Administration (the “FDA”) over the purported inefficacy of PE. Soon after the IPO, 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.”
Plaintiff alleges that the Registration Statement failed to disclose 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’ public statements were materially false and misleading at all relevant times and negligently prepared.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Kenvue Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by December 8, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
