A U.S. appeals court panel has indicated a potential revival of more than 500 private lawsuits against Kenvue, alleging its Tylenol painkiller causes autism or ADHD if used during pregnancy. During a hearing on Monday, judges from the 2nd U.S. Circuit Court of Appeals in Manhattan questioned whether a trial judge improperly excluded expert testimony that suggested a link. U.S. District Judge Denise Cote had dismissed the lawsuits last December, criticizing the methodology of the plaintiffs' expert witnesses, who claimed prenatal Tylenol use led to neurodevelopmental disorders. Cote stated the proposed testimony "obscured the complexities, inconsistencies, and weaknesses in the underlying data."
However, Circuit Judge Gerard Lynch expressed difficulty understanding why the district court deemed the expert testimony "nonsense," noting that the plaintiffs' primary expert, Harvard School of Public Health Dean Andrea Baccarelli, appeared to explain his methodology thoroughly. Judge Guido Calabresi also suggested that a jury could have evaluated the evidence, implying that the lawsuits might have been prematurely dismissed. This development led to a 2.5% drop in Kenvue's shares, closing down $0.42 at $16.24. Kenvue maintains that Tylenol is safe and does not cause autism, with a spokesperson stating, "The science has not changed."
The potential revival of these lawsuits introduces uncertainty for Kimberly-Clark's planned acquisition of Kenvue, a deal valued at over $40 billion, set to close in 2026. Despite this, Kimberly-Clark and Kenvue have informed U.S. regulators that any condition related to the alleged link between Tylenol and autism/ADHD would not allow Kimberly-Clark to withdraw from the acquisition. Medical groups, such as the American Academy of Pediatrics and the American College of Obstetricians and Gynecologists, still recommend acetaminophen as the first-line medication for pain and fever during pregnancy, advising its use at the lowest possible dose.