Kenvue Stock Plummets 13% Amid Talc Lawsuit Concerns
Kenvue shares cratered 13% Thursday as investors reacted to a new legal threat tied to its legacy talc-based baby powder. The consumer healthcare spinoff from Johnson & Johnson now faces approximately 3,000 claimants in a UK High Court filing - marking the first such lawsuit outside North America.
The case revives longstanding allegations that talc in Johnson's Baby Powder caused cancer, though Kenvue maintains there's no scientific basis for such claims. Notably, the company reformulated the product with cornstarch in 2020, but legal shadows persist from its pharmaceutical parent's legacy liabilities.
Market reaction was severe compared to the S&P 500's modest 0.6% decline, reflecting investor skittishness around mass tort liabilities. The selloff underscores how quickly sentiment can turn when growth stocks face unforeseen litigation risks.
