The claim centres on phenylephrine, a key ingredient in cold and flu medications
A class action lawsuit has been filed in the Auckland High Court against pharmaceutical giant Johnson & Johnson.
The legal action, brought by boutique class action firm JGA Saddler, alleged that the company has marketed and sold ineffective cold and flu medicines for nearly 20 years.
At the centre of the claim is phenylephrine (PE), a key ingredient in several over-the-counter medications, including Codral Cold & Flu and Sudafed PE. JGA Saddler contended that phenylephrine, when taken orally, does not work as advertised as a nasal decongestant.
The lawsuit followed growing concerns over the drug’s efficacy. In 2023, the United States Food and Drug Administration (FDA) announced that oral phenylephrine was ineffective, leading to calls for its removal from the market.
JGA Saddler’s director, Rebecca Jancauskas, stated that Johnson & Johnson continued to sell products containing phenylephrine despite decades of scientific evidence questioning its 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,” Jancauskas said in a press release.
Consumer advocacy group Consumer NZ has also raised concerns. Chief Executive Jon Duffy emphasized the importance of holding companies accountable when their products fail to perform as promised.
"Consumers are especially vulnerable when they are unable to test product claims themselves and when it comes to products in the health space, it’s critical that consumers can rely on the claims manufacturers make,” Duffy said.
Consumer NZ is calling for sales of the products to be halted until their effectiveness can be independently verified.
The controversy surrounding phenylephrine intensified after pseudoephedrine, a proven oral decongestant, was banned in New Zealand from 2011 to 2024 due to its misuse in illegal drug manufacturing. During this period, phenylephrine was marketed as a substitute despite questions about its efficacy.
JGA Saddler is representing affected consumers in a no-win, no-fee class action, funded by Omni Bridgeway, a global litigation funder. Omni Bridgeway’s New Zealand Investment Manager Jacob Kerkin stated that the case is about ensuring accountability.
“For around 20 years, New Zealanders have been sold cold and flu products to relieve their symptoms, despite studies and scientific evidence showing their key ingredient phenylephrine is ineffective when taken orally,” Kerkin said. “Kiwis deserve better.”
The lawsuit is open to all New Zealanders who purchased any of the 17 listed Codral or Sudafed PE products between 2005 and 2025.
