Kenvue Stock Falls 13% on Thursday
On Thursday, Kenvue Inc. experienced a significant decline, with its stock price dropping by more than 13%. This downturn was primarily driven by ongoing legal issues surrounding its baby powder product.
Kenvue Stock Declines Amid Legal Troubles
The recent sell-off reflects investor concerns in the consumer healthcare sector. Kenvue’s stock (KVUE) suffered a larger drop compared to the S&P 500, which saw only a 0.6% decrease on the same day.
Background on Legal Issues
Kenvue, once part of Johnson & Johnson, has come under renewed scrutiny due to lawsuits tied to its Johnson’s Baby Powder. This product has faced allegations over the years connecting it to various types of cancer.
- Total lawsuits against the baby powder: Thousands
- Recent case filed in the U.K.: Approximately 3,000 claimants
- Court: English High Court
The claims in the current U.K. lawsuit have been directed against both Kenvue and its former parent company, Johnson & Johnson. This highlights Kenvue’s inherited responsibility for consumer healthcare products linked to past legal challenges.
Product Changes and Company Response
In 2020, in response to health concerns, Kenvue switched the baby powder’s main ingredient from talc to cornstarch. Despite these changes, Kenvue maintains its position against the cancer allegations. The company believes that the court will ultimately find no valid link between the talc-based powder and cancer, as asserted by the claimants.
The current legal situation indicates ongoing challenges for Kenvue as it aims to regain investor confidence. As it navigates this turbulent period, the company’s market performance remains a focal point for both analysts and investors alike.
