J&J, Kenvue Lose Bid to Toss Securities Class Action Over IPO

Kenvue Inc. and Johnson & Johnson can’t avoid a securities class action that alleges the companies omitted details in the J&J spinoff’s initial public offering statements about a pending regulatory review, a federal judge said.

The complaint plausibly alleged that statements tied to Kenvue’s IPO and subsequent exchange offer failed to disclose the “very real possibility” that the Food and Drug Administration’s review of a key ingredient in nasal decongestant drugs could find it ineffective and that the committee’s vote was imminent, Judge Zahid N. Quraishi of the US District Court for the District of New Jersey said in an ...