Kenvue Stock To Face More Headwinds? Trump's Tylenol Warning Revives Autism Lawsuits, Retail Bulls Stay Unfazed

Families are asking a U.S. appeals court to revive lawsuits against Kenvue and retailers that sold acetaminophen, alleging Tylenol and generic versions of the drug caused autism and ADHD in children, and pointed to U.S. President Donald Trump's recent advice that pregnant women avoid the pain reliever.

Shares of Kenvue closed Wednesday down 2.2% at $16.86, before edging up 0.8% in after-hours trading.

Lawyer Ashley Keller, representing the families, notified the 2nd U.S. Circuit Court of Appeals on Wednesday of the administration's position, according to a Reuters report.

At a White House press event two days earlier, Trump, along with FDA Commissioner Marty Makary and Health Secretary Robert F. Kennedy Jr., highlighted research by Harvard public health dean Andrea Baccarelli, one of the plaintiffs' experts.

More than 500 lawsuits against Kenvue and retailers were dismissed last year by U.S. District Judge Denise Cote in Manhattan, who concluded the expert testimony lacked reliable methods and relied on selective analysis. The appeals court is scheduled to hear arguments on Oct. 6.

Kenvue said regulators have not confirmed any link between acetaminophen and autism, adding that it expects the litigation to fail. Legal experts said it would be unusual for the appeals court to give much weight to the administration's actions or Trump's comments in deciding how to proceed with the cases.

Separately, South Korea's drug regulator said it would seek information from companies following Trump's remarks, though it added the U.S. announcement“contained little substance.” The FDA also said it would not ban acetaminophen but will add a pregnancy-related autism warning to labels while stressing no causal link has been proven.

Studies have shown conflicting results. A 2024 Swedish study involving 2.5 million children found no causal connection, while a 2025 review of 46 prior studies, co-authored by Baccarelli and colleagues from Mount Sinai and Harvard, suggested a potential association but stated that causation could not be proven.

On Stocktwits, retail sentiment was 'extremely bullish' amid a 186% jump in 24-hour message volume.

“I'd guess pregnant women make up a small portion of total Tylenol consumption,” said one user.“Great opportunity to buy at a discount. Will get paid the dividend while the market takes its time to think about this one.”

Another user reported buying shares at $16.63 for a long-term dividend portfolio and was watching to see if the price dropped further or if that day marked the low.

Kenvue's stock has declined 18.8% so far in 2025.

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