Major Class Action Targets Johnson & Johnson Over “Ineffective” Cold Medications

Rebecca Jancauskas

Could it be New Zealand’s Largest Class Action?


A potential landmark consumer rights case alleges Johnson & Johnson sold New Zealanders decongestants containing a “useless” ingredient for nearly 20 years in a claim that suggest it could be the largest class action lawsuit in New Zealand.

Boutique law firm SGA Saddler (with offices in New Zealand and Brisbane) claims products like Codral Cold & Flu and Sudafed PE relied on phenylephrine (PE) – an oral decongestant studies show may be no more effective than a placebo.

SGA Saddler director Rebecca Jancauskas (pictured) accuses the pharmaceutical giant of prioritizing profits over people:
“Customers deserve medicines that work as advertised. When companies sell products that fail this basic test, they must be held accountable… Johnson & Johnson used outdated, flawed studies to push products that don’t do what the packaging promises.”

Key allegations

  • Switching to PE after pseudoephedrine (an effective decongestant) was restricted in 2011 due to meth production risks
  • Continuing sales despite decades of research questioning PE’s efficacy
  • Marketing 17 specific products (listed below) between 2005-2025

Consumer NZ CEO Jon Duffy reinforced concerns:
“Large corporations have no excuse for misleading claims, especially in healthcare. Consumers can’t test medical products themselves – they must be able to trust labels.” The organization now recommends discontinuing use of affected products until proven effective.

Affected Products
Sudafed PE Range:

  • Nasal Decongestant Tablets
  • Sinus + Pain Relief (Day & Night/Tablet)
  • Sinus + Allergy & Pain Relief
  • Sinus + Anti-inflammatory Pain Relief

Codral Range:

  • Cold & Flu + Mucus Cough Capsules
  • Decongestant Tablets
  • Day & Night Tablets
  • Night Tablets
  • Mucus Cough + Cold Liquid
  • Cold & Flu Powder/Sore Throat Tablets

Benadryl Products:

  • PE Chesty Cough & Nasal Congestion Syrup
  • Day & Night Cold & Flu + Cough Tablets
  • Mucus Relief Plus Decongestant Liquid

What’s Next?


Funded by Omni Bridgeway, this no-win, no-fee class action could become NZ’s largest consumer lawsuit. Affected consumers are urged to register claims through SGA Saddler.

Omni Bridgeway Limited (OBL) is a public company listed on the Australian Securities Exchange (ASX:OBL). It specializes in providing funding for significant and large-scale litigation through its funding entities4. The company has offices in multiple locations worldwide, including New Zealand

“This isn’t just about refunds – it’s about corporate accountability,” Jancauskas said.

Scroll to Top