The company's baby powder product is under legal fire once again.

A potential legal headache for consumer healthcare giant Kenvue ( KVUE -13.22% ) was causing pain for investors on Thursday. Such troubles tend to spook the market; hence the more than 13% sell-off of Kenvue across that trading session. The S&P 500 ( ^GSPC -0.63% ) , by comparison, did much better on the day with "only" a 0.6% decrease.

New lawsuit with old allegations

Until it was spun off into a separate company, Kenvue was part of sprawling pharmaceutical company Johnson & Johnson ( JNJ 0.32% ) . The company has faced tens of thousands of lawsuits over its Johnson's Baby Powder, a once talc-based product that is widely alleged to have caused various types of cancer.

The first such lawsuit i

See Full Page