AUSTIN, TX – Texas Attorney General Ken Paxton has filed a motion to stop Kenvue, the manufacturer of Tylenol, from paying a scheduled November 26 dividend that he argues would drain company assets needed to compensate Texans for alleged illegal and unethical conduct.
The motion follows a lawsuit filed last week against Kenvue and Johnson & Johnson, accusing the companies of deceptively marketing Tylenol to pregnant women despite evidence linking acetaminophen exposure to an increased risk of autism and attention-deficit hyperactivity disorder in children. The lawsuit also seeks to hold Johnson & Johnson accountable for what Paxton described as an illegal corporate spinoff designed to evade financial responsibility.
“I will not allow Big Pharma to ruin the lives of Texans with their lies and then refuse to pay the bill when it’s brought to account,” said Attorney General Paxton. “Kenvue very well may be insolvent because of its own reckless actions, and it should no longer pay fraudulent dividends as a way to avoid paying future civil penalties.”
Paxton’s motion requests a court order barring Kenvue from issuing dividends or disposing of corporate assets outside normal business operations until a final judgment is rendered. He is also seeking an injunction to halt what he described as illegal and misleading marketing practices.
The Attorney General’s Office stated that the motion is intended to ensure that Kenvue has sufficient funds to pay potential penalties for its alleged misconduct.
