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June 24, 2026

America November 5, 2025 4 mins read

Judge Rejects Johnson & Johnson, Kenvue Bid to End IPO Fraud Claims

America ı By Rihem Akkouche

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J&J and Kenvue IPO Fraud Claims

J&J and Kenvue’s Push for Appeal Denied

In addition to seeking reconsideration, the companies had asked the court to certify three issues for interlocutory appeal, including whether companies must disclose every contrary scientific study when offering opinions on a product’s safety or efficacy.

Judge Quraishi rejected that too, calling the request a “mischaracterization of the court’s prior ruling.” He clarified that the decision did not require disclosure of all studies but found that omitting specific, significant evidence of phenylephrine’s ineffectiveness was materially misleading.

“Their disagreement with the court’s application of the materiality standard does not meet the threshold for appeal,” the judge wrote, firmly shutting the door on the companies’ procedural escape route.

Corporate and Legal Ripples

The fraud case lands amid a major corporate reshuffle: Kimberly-Clark Corp., maker of Huggies, announced this week its plan to acquire Kenvue — which was spun off from J&J in August 2023 — in a deal valued at $48.7 billion.

The investors behind the proposed class action are represented by Robert Prongay and Leanne Solish of Glancy Prongay & Murray LLP, and James Cecchi, Donald Ecklund, and Kevin Cooper of Carella Byrne Cecchi Brody & Agnello PC.

J&J and Kenvue are defended by Kristen Seeger, John Skakun, Christopher Lee, and Takayuki Ono of Sidley Austin LLP, and David Kott and Joseph Braunreuther of McCarter & English LLP.

Underwriters named in the suit include Paul Hastings LLP, represented by Isaac Ashkenazi, Barry Sher, Jennifer Conn, and Zachary Zwillinger.

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