A major class action has been filed against pharmaceutical giant Johnson & Johnson, accusing the company of selling ineffective cold and flu medications to New Zealanders for nearly 20 years.
The class action has been brought by boutique class action firm JGA Saddler who allege the company has marketed and sold ineffective medicines for around 20 years.
The lawsuit could become one of New Zealand’s largest-ever class actions, as millions of consumers may have purchased popular products such as Codral Cold & Flu and Sudafed PE, believing they were effective.
Popular brands including several varieties of Codral Cold & Flu and Sudafed PE – all owned by Johnson & Johnson – contain phenylephrine, a drug the company has marketed and sold as a nasal decongestant for decades.
However, a growing body of evidence reveals that phenylephrine, when taken orally, simply doesn’t work.
JGA Saddler director Rebecca Jancauskas said Johnson & Johnson had put profit before people by continuing to market the medicines despite scientific evidence questioning their effectiveness.
“Customers should be able to confidently buy medicines that work as advertised, and when they don’t, the company involved should be held accountable,” she said.
“New Zealanders have trusted these products to relieve congestion and wouldn’t have bought them if they knew they were ineffective.”
The case follows growing global scrutiny over phenylephrine, with the US Food and Drug Administration (FDA) proposing an outright ban on the ingredient in oral medications, citing a lack of evidence that it provides any relief.
Consumer NZ has backed the lawsuit, with Chief Executive Jon Duffy saying large multinational companies have no excuse for misleading customers about the effectiveness of their products.
“Consumers are especially vulnerable when they are unable to test product claims themselves. When it comes to health products, it’s critical that people can rely on what manufacturers say,” he said.
Duffy urged retailers to stop selling these products until their effectiveness can be independently verified and encouraged anyone affected to join the class action.
Phenylephrine became a common ingredient in New Zealand cold and flu medicines after pseudoephedrine, a proven oral decongestant, was banned for sale between 2011 and 2024 due to concerns it was being used to manufacture illicit drugs.
Johnson & Johnson and other pharmaceutical companies quickly marketed phenylephrine as an alternative, despite concerns about its effectiveness.
The lawsuit is being backed by global litigation funder Omni Bridgeway, meaning affected consumers do not need to pay upfront legal fees to participate. Omni Bridgeway’s New Zealand Investment Manager Jacob Kerkin said the case was about holding big pharmaceutical companies accountable.
“For around 20 years, New Zealanders have been sold cold and flu products that claim to relieve symptoms, despite studies showing their key ingredient is ineffective,” he said. “Kiwis deserve better.”
JGA Saddler is encouraging anyone who has purchased one of the 17 affected products between 2005 and 2025 to register for the class action at www.coldandfluclassaction.co.nz.
