Kenvue Faces Possible Revival of Autism Lawsuits Over Tylenol

Kenvue may face the revival of over 500 lawsuits claiming Tylenol causes autism, after a U.S. appeals court questioned previous dismissals. The court challenged the exclusion of evidence from expert witnesses. The ruling's impact on Kenvue's $40 billion deal with Kimberly-Clark remains uncertain.

Kenvue may once again confront over 500 lawsuits alleging that its Tylenol product leads to autism, following a U.S. appeals court's scrutiny of prior dismissals. The court is examining whether crucial evidence was unjustly excluded in the initial proceedings.

Shares of Kenvue dipped as judges raised the possibility of reversing last year's dismissal, reflecting potential validity in expert testimonies that were previously overlooked. The hearing follows comments by former President Trump and health officials suggesting a controversial link between Tylenol use in pregnancy and autism.

The legal uncertainties could influence Kimberly-Clark's proposed $40 billion acquisition of Kenvue. While both companies remain committed to their merger timeline for 2026, the ongoing litigation, including a suit brought by Texas Attorney General Ken Paxton, adds layers of complexity to the deal.

(With inputs from agencies.)