Lawsuit Against Dummy Pills For Allergy, Cold: Johnson & Johnson And Procter & Gamble Face Allegations

In a recent lawsuit, Johnson & Johnson JNJ and Procter & Gamble Co PG are facing allegations of misleading consumers regarding decongestant cold medicines containing an ingredient that a unanimous FDA advisory panel declared ineffective this week.

According to FDA panel experts who reviewed the latest research on the long-questioned phenylephrine, a drug ingredient used in several leading decongestants used by millions of Americans looking for relief from a stuffy nose, is likely no better than a dummy pill.

Advisers to the FDA voted unanimously against the effectiveness of the phenylephrine found in popular versions of Benadryl, Mucinex, Tylenol, and other medications stocked on store shelves.

A proposed class action filed in the federal court in Pensacola, Florida, asserts that these companies were aware or should have been aware by 2018 that their marketing claims about products containing phenylephrine were false and deceptive. 

In 2018, new FDA guidelines for assessing symptoms associated with nasal congestion indicated that prior data supporting phenylephrine's efficacy could no longer be considered reliable, Reuters noted, citing the complaint.

The plaintiff claimed that he purchased Johnson & Johnson's Sudafed PE and Benadryl Allergy Plus Congestion, as well as Procter & Gamble's Vicks NyQuil, relying on the companies' "misleading and deceptive" assertions about the products' effectiveness.

The plaintiff argued that these claims violated the state's consumer protection laws. He is seeking a minimum of $5 million in damages for those who purchased these products in the U.S. within the last five years.

Price Action: JNJ shares are up 0.24% at $164.38, and PG shares are up 1.05% at $154.71 on the last check Thursday.