Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Oct. 13, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Kenvue Inc. (“Kenvue” or the “Company”) (NYSE: KVUE) investors that a lawsuit filed on behalf of investors that purchased Kenvue securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s May 2023 initial public offering (the “IPO” or “Offering”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Kenvue, previously the consumer health division of Johnson & Johnson, went public with an IPO in May 2023, offering around 171,812,560 shares of its common stock to the public at a price of $22.00 per share. The IPO was based on the premise that the Company and its products, including phenylephrine ("PE"), were effective.
However, shortly after the IPO, an FDA panel unanimously declared that oral forms of PE were ineffective in relieving nasal congestion. They published these findings in a document titled "Efficacy of Oral Phenylephrine as a Nasal Decongestant." The FDA revealed that it had been evaluating data on the effectiveness of oral PE since December 2007.
Following this news, Kenvue's stock saw a decline of $1.01 per share, amounting to a 4.58% drop, closing at $21.06 on September 12, 2021, causing financial harm to investors. The stock price did not recover to the IPO price of $22.00 thereafter.
The class action complaint filed in response alleges that the Registration Statement made material false and misleading statements and omitted crucial adverse information about the Company's business, operations, and prospects. Specifically, the complaint asserts that: (1) Kenvue was facing potential challenges due to known concerns about the efficacy of phenylephrine; (2) the IPO did not address risks associated with the efficacy of phenylephrine, which had been in question since at least 2007; (3) while the Company disclosed general litigation risks, it did not specify the risk related to potential legal action arising from unfavorable findings about the effectiveness of phenylephrine; and (4) as a result, the positive statements made by the Defendants about the Company's business, operations, and prospects were significantly misleading and lacked a reasonable basis throughout the relevant time period.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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