Kenvue (KVUE) stock fell on Tuesday after Texas Attorney General Ken Paxton filed a lawsuit against the company over allegations that Tylenol is tied to autism. This lawsuit will rely on the Uniform Fraudulent Transfer Act and the Deceptive Trade Practices Act. These are designed to recover assets a debtor has transferred to defraud creditors and to protect consumers from unfair or misleading business practices.
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The Texas AG’s lawsuit claims that Johnson & Johnson (JNJ), which owned Tylenol before its spinoff of Kenvue, “willfully ignored and attempted to silence the science” that links Tylenol to autism. It also argues that Kenvue was created to take the fall for Johnson & Johnson and protect the pharmaceutical company’s assets.
The lawsuit against Kenvue comes after President Donald Trump and U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. updated health guidance for pregnant women last month. The government’s official stance is for women to avoid Tylenol while pregnant due to its potential ties to autism. While some studies have found a connection between women taking Tylenol while pregnant and their children developing autism, other studies have come to different conclusions.
Kenvue Stock Movement Today
Kenvue stock was down 2.02% on Tuesday, extending a 28.3% drop year-to-date. The company’s shares have also fallen 33.8% over the past 12 months. Investors will note that KVUE stock experienced a sharp decline following President Trump and RFK Jr.’s Tylenol announcement last month.
Is Kenvue Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kenvue is Moderate Buy, based on five Buy and eight Hold ratings over the past three months. With that comes an average KVUE stock price target of $19.91, representing a potential 34.66% upside for the shares.
