The Kenvue logo is seen displayed on a smartphone screen. U.S. health officials will hold a press conference on autism, which is expected to link Kenvue's Tylenol to the disease. (Illustration by Thomas Fuller/Getty Images)

Yuvraj Malik·Stocktwits

Published Oct 17, 2025 | 4:18 AM GMT-04

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Kenvue Inc.'s shares rose 0.6% in early premarket trading on Friday, a day after hitting a record low following the filing of a U.K. lawsuit against the company and its former parent, Johnson & Johnson, over allegedly harmful substances in J&J's previously sold talc-based baby powder.

KP Law said on Thursday it filed a suit at the English High Court earlier in the week on behalf of more than 3,000 people who allege their ovarian cancer, mesothelioma, or other diseases were caused by the use of J&J's baby powder between 1965 and 2023.

Kenvue shares dropped 13.2% in the session, their worst performance on record since the company's spin-off from J&J in May 2023. As part of the separation, Kenvue indemnified Johnson & Johnson for all talc-related litigation outside of the U.S. and Canada, a J&J spokesperson clarified to media publications.

J&J is already facing tens of thousands of lawsuits in the U.S., where claimants allege they were diagnosed with cancer after using baby powder and other company talc products.

To be sure, the company stopped selling talc-based baby powder in the U.S. in 2020, switching to a cornstarch product, and in the UK in 2023.

In an investor note on Thursday, Citi said that damages awarded by the UK courts are generally limited to compensation for losses caused by a defendant's actions, whereas the majority of the awards to defendants in the US lawsuits were for punitive damages against J&J.

It noted that J&J was recently ordered to pay $966 million to the family of a woman who died from mesothelioma.

On Stocktwits, the retail sentiment for KVUE shifted to 'bullish' as of early Friday, from 'bearish' the previous day, and 24-hour message volume rose 2,266%.

"There are couple of things to remember. Lawsuits of this nature are not a new thing most of them result to nothing," said one bullish user. "This news was also not a new news. It was known for a while now... This is not a trash company and it operates around the world."

"$KVUE The selloff was expected, maybe not to this level or volume though. Lets see where it goes," said another user.

With Thursday's slide, Kenvue shares are down 34% year-to-date.

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