A Texas judge on February 26, 2026, denied Kenvue Inc.’s motion to dismiss a lawsuit filed by the state’s Attorney General. The suit accuses Kenvue of concealing autism‑related risks associated with its Tylenol brand when used by pregnant women, a claim that could expose the company to substantial liability and regulatory scrutiny.
Kenvue, the world’s largest pure‑play consumer health company and a spin‑off of Johnson & Johnson, reported annual revenue of $15.12 billion with a 3‑year growth rate of 0.3%. Its operating margin stands at 18.03% and net margin at 9.72%, figures that underscore the company’s sizable franchise and the potential financial impact of a successful lawsuit on its earnings and cash flow.
Management has stated that it will vigorously defend itself, asserting that rigorous independent research confirms no proven link between Tylenol and autism. The company maintains that the claims lack legal merit and scientific support, and it has highlighted the dismissal of hundreds of similar federal lawsuits for lack of evidence.
The ruling means the lawsuit will proceed, adding to the growing legal challenges surrounding Tylenol and autism claims. A favorable outcome could result in significant damages and force Kenvue to revise product labeling and safety disclosures, while an adverse outcome could damage the brand’s reputation and erode consumer confidence in its $1 billion franchise.
The decision also signals to investors that Kenvue faces ongoing legal headwinds that could affect its profitability and strategic focus, reinforcing the need for careful monitoring of the case’s developments and any potential regulatory actions that may follow.
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