Kenvue Inc (KVUE)

[DewDiligence]

Re: KVUE’s talc liability

After thinking this through, I’ve come to the opinion that KVUE’s talc-litigation risk (which excludes cases in the US and Canada, where JNJ is on the hook) is actually quite small.

One reason why damage awards from consumer-product litigation are so high in the US is that US plaintiffs have the right to request a jury trial. However, this is not the case in many countries of the world, where a judge or magistrate rules on the merits of such cases.

Moreover, even in other countries where jury trials are permitted, these countries do not allow plaintiffs the kind of district “shopping” that occurs in the US, where plaintiffs seek out the friendliest venue in which to try their cases.

All told, these legal differences between the US and most other countries are hugely consequential, IMO.