Kenvue Stock Drops After Texas Attorney General Sues Company Alleging Deceptive Marketing Of Tylenol

• The lawsuit comes on the heels of President Trump linking Tylenol to autism.
• Though the claims are not backed by scientific evidence, it has created a divide in opinion on the popular drug.
• Kenvue has maintained that Tylenol is safe and its consumption is unrelated to autism.
   

Attorney General of Texas Ken Paxton on Tuesday sued Johnson & Johnson (JNJ) and Kenvue (KVUE), alleging deceptive marketing for pain relief drug Tylenol.

The lawsuit comes on the heels of President Trump linking Tylenol to autism. In late September, the President linked autism to childhood vaccine use and the use of Tylenol by women when pregnant. Though the claims are not backed by scientific evidence, it has created a divide in opinion on the popular drug.

"I want to say it like it is, don't take Tylenol. Don't take it," Trump said in a press conference last month.  

Paxton’s Allegations

Paxton alleged that Johnson & Johnson and Kenvue deceptively marketed Tylenol to pregnant mothers despite knowing that early exposure to acetaminophen, Tylenol’s only active ingredient, leads to a significantly increased risk of autism and other disorders.

“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks. These corporations lied for decades, knowingly endangering millions to line their pockets. Additionally, seeing that the day of reckoning was coming, Johnson & Johnson attempted to escape responsibility by illegally offloading their liability onto a different company,” Paxton said.

He alleged that Tylenol was marketed as a completely safe pain medication for pregnant women, violating Texas’s consumer protection laws. Paxton also noted that Johnson & Johnson violated the Texas Uniform Fraudulent Transfer Act by transferring liabilities arising from Tylenol to a separate company, Kenvue.

Kenvue was spun off from JNJ in 2023. In 2024, Kenvue’s net sales were $15.5 billion, of which Tylenol is estimated to account for about $1 billion.

Kenvue has maintained that Tylenol is safe and its consumption is unrelated to autism. “We believe independent, sound science clearly shows that taking acetaminophen does not cause autism. We strongly disagree with allegations that it does and are deeply concerned about the health risks and confusion this poses for expecting mothers and parents,” the company had said following Trump’s claims. The firm has also stuck to its full guidance on the safe use of Tylenol.

How Did Stocktwits Users React?

KVUE shares traded 2% lower at the time of writing. On Stocktwits, retail sentiment around KVUE rose from ‘extremely bearish’ to ‘bearish’ territory over the past 24 hours, while message volume rose from ‘extremely low’ to ‘low’ levels.

A Stocktwits user expressed optimism about the stock's future despite the lawsuit, highlighting its high-quality products.

KVUE stock is down 31% this year and by about 36% over the past 12 months. 

Read also: Tesla Registrations Slumped Nearly 19% In EU In September Despite Rising EV Demand

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