Texas Attorney General Paxton Takes Aim at Kenvue Over Tylenol and Dividend Concerns

Post by : Bianca Suleiman

In a notable legal confrontation, Texas Attorney General Ken Paxton is challenging Kenvue's plans to distribute a $398 million dividend to shareholders while questioning Tylenol's safety for pregnant women. This case is set for a hearing on Friday in Carthage, Texas, capturing national interest due to its political and medical relevance.

Paxton initiated the lawsuit on October 28, alleging that Kenvue concealed potential risks linked to the prenatal use of Tylenol. The Texas Republican's actions align with claims made by former President Donald Trump and U.S. Health and Human Services Secretary Robert F. Kennedy Jr., who have suggested, without scientific backing, that acetaminophen could raise autism risks when used by expectant mothers.

Kenvue, a spinoff from Johnson & Johnson in 2023, maintains that Tylenol is safe, reflecting decades of supportive research and medical advice advocating for acetaminophen as a go-to option for fever and pain management in pregnancy. Johnson & Johnson has also come to Tylenol's defense, emphasizing its extensive safety history.

The ongoing dispute regarding the safety of Tylenol coincides with Kimberly-Clark's $40 billion attempt to acquire Kenvue, which would broaden its product range to include higher-margin segments like skincare and oral care. Kenvue boasts brands such as Neutrogena, Band-Aid, Johnson's Baby shampoo, and Listerine. This lawsuit has cast doubts on the merger and raised issues regarding corporate governance and liability protections associated with spinoffs.

Paxton's legal documents underscore the importance of safeguarding Kenvue's cash reserves, cautioning that potential lawsuits related to Tylenol and past talc issues could jeopardize the company's financial health. He also argued that the state is entitled to restrict Kenvue from marketing Tylenol as safe under regulations concerning misleading business communications.

Kenvue and Johnson & Johnson counter that Paxton's demands are without precedent, asserting that a Texas court does not have jurisdiction over New Jersey-based entities and their offshoots. They cautioned that halting dividend disbursements or regulating product messaging could lead to widespread legal violations, undermining the integrity of the state judiciary.

Set for 9 a.m. CST, the hearing at the Panola County courthouse will be a focal point as legal, corporate, and political tensions converge over a well-known household remedy.