Kenvue stock falls as UK talc lawsuits raise liability concerns

Investing.com -- Kenvue (NYSE: KVUE) stock fell 5% Thursday as the consumer health company faces new legal challenges in the United Kingdom related to allegations that its talc products cause cancer.

The lawsuit, filed Tuesday at the English High Court, represents more than 3,000 people who claim Kenvue’s baby powder caused ovarian cancer, mesothelioma, or other diseases between 1965 and 2023. The legal action targets both Johnson & Johnson (NYSE: JNJ), which spun off Kenvue in 2023, and Kenvue UK Limited.

KP Law, the firm representing the claimants, alleges the talc products contained carcinogenic fibers including asbestos and has estimated the value of the lawsuit at approximately £1 billion ($1.34 billion). Unlike similar cases in the U.S., these lawsuits will be decided by a judge rather than a jury.

Kenvue has maintained that its baby powder "did not contain asbestos, and does not cause cancer." Johnson & Johnson has directed queries to Kenvue, stating that the spinoff company "retained the responsibility and any purported liability for talc-related litigation outside of the United States and Canada."

Citi analyst Filippo Falorni expressed caution about the financial implications for Kenvue, noting, "While the ultimate size of the liability for the UK lawsuit remains unknown, we are cautious about the financial implications for Kenvue given the legal precedent from the US cases against J&J."

Kenvue has also recently faced pressure related to concerns about Tylenol’s potential link to autism, an issue highlighted by President Trump.

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