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US appeals court revives some claims in decongestant false ad litigation

Created at 30 Jul · 9:48 PM1 source↑ Market-relevant
IN SHORT

A U.S. appeals court revived some consumer claims against drugmakers and retailers over over-the-counter decongestants, finding that "maximum strength" labels and drugs approved via the New Drug Application process could still be subject to litigation.

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Key Numbers

100lawsuits filed by consumers
20 yearsstudies impugning oral PE's efficacy

Who's Involved

Procter & Gamble
drugmaker accused of selling ineffective decongestants
CVS
retailer accused of selling ineffective decongestants
2nd U.S. Circuit Court of Appeals
court that revived portions of the litigation
Denny Chin
Circuit Judge who wrote the opinion
Jonathan Selbin
lawyer for the consumers
Brian Cogan
U.S. District Judge in Brooklyn
FDA
agency that found oral phenylephrine ineffective

↳ Why This Matters

The ruling allows some consumer claims to proceed in a significant class-action lawsuit concerning the efficacy of widely sold decongestants, potentially impacting drug labeling and consumer trust in over-the-counter medications.

Key facts

  • A U.S. appeals court revived some consumer claims against drugmakers and retailers regarding over-the-counter decongestants.
  • The court allowed claims related to "maximum strength" labels and drugs approved via the New Drug Application process.
  • Most state law-based claims were preempted because defendants followed FDA labeling requirements.
  • Consumers' civil racketeering claim was dismissed due to lack of standing.
  • The FDA proposed removing oral phenylephrine as an ingredient in November 2024.

A federal appeals court has revived portions of nationwide litigation accusing drugmakers and retailers of selling ineffective over-the-counter decongestants. The consumers' lawsuits were filed after a U.S. Food and Drug Administration advisory panel found in September 2023 that oral phenylephrine, an ingredient in products like Vicks NyQuil Severe Cold & Flu and Advil Sinus Congestion & Pain, was no more effective than a placebo.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled that while most state law-based claims were preempted because the defendants followed FDA labeling requirements, claims related to decongestants labeled "maximum strength" could proceed. The court also revived claims concerning brand-name drugs approved through the New Drug Application process, as defendants could have updated labels to reflect current scientific understanding.

Circuit Judge Denny Chin noted that the limitations on consumer remedies might seem unfair given the FDA's findings and long-standing studies questioning oral phenylephrine's efficacy, but stated that any fix must come from the FDA, not litigation. The court also dismissed a civil racketeering claim against the defendants due to a lack of standing.

Lawyers for the consumers expressed disappointment with parts of the decision and are reviewing their next steps, emphasizing that manufacturers allegedly sold ineffective products for over a decade. The litigation has been returned to U.S. District Judge Brian Cogan. In November 2024, the FDA proposed removing oral phenylephrine as an ingredient in over-the-counter cold medications.

Frequently asked questions

Oral phenylephrine is an ingredient commonly found in over-the-counter decongestants, such as Vicks NyQuil Severe Cold & Flu and Advil Sinus Congestion & Pain.

Consumers accused them of selling billions of dollars of decongestants that did not work, based on findings that oral phenylephrine is no more effective than a placebo.

The court revived claims related to "maximum strength" labels and drugs approved via the New Drug Application process, while dismissing most other state law claims and a racketeering claim.

The FDA's advisory panel found oral phenylephrine ineffective, and the agency has proposed removing it as an ingredient in over-the-counter cold medications.

What Happens Next

01The litigation will return to U.S. District Judge Brian Cogan.
02Consumers' legal team will review their next steps.
03The FDA may act on its proposal to remove oral phenylephrine.

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Cadence

How It Developed

Consumers filed about 100 lawsuits after an FDA panel found oral phenylephrine ineffective.
A U.S. appeals court revived claims over decongestants labeled "maximum strength".
The court also revived claims over brand-name drugs approved through the New Drug Application process.
The appeals court returned the litigation to the U.S. District Judge who dismissed it in October 2024.
In November 2024, the FDA proposed removing oral phenylephrine as an ingredient.

Sources

T1
Drugmakers, retailers must face 'maximum strength' claim in decongestant false ad litigation in USReuters

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