Texas Attorney General Ken Paxton has filed a motion to block Kenvue, the maker of Tylenol, from issuing a dividend payment scheduled for Nov. 26.
Paxton argues the payout could drain funds needed to pay potential penalties in an ongoing lawsuit alleging deceptive marketing targeting pregnant women who ignore potential risks of defects in children.
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“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,” Paxton said.
The motion follows a recent lawsuit filed by Paxton against Kenvue and its former parent company, Johnson & Johnson. The suit accuses them of deceptively marketing Tylenol to pregnant women despite alleged risks linking acetaminophen, Tylenol’s active ingredient, to higher chances of autism and ADHD in children.
He also claims Johnson & Johnson’s spinoff of Kenvue was designed to avoid financial responsibility for these alleged harms.
Paxton added that Kenvue “should no longer pay fraudulent dividends as a way to avoid paying future civil penalties.”
The motion asks a judge to prohibit Kenvue from paying dividends or making major asset transfers until a final judgment is reached.
Paxton’s office argues the company’s potential liabilities could total billions of dollars, and the dividend payment could leave Kenvue insolvent if found liable.
Additionally, the motion seeks an injunction to halt Kenvue’s alleged misleading marketing practices. Paxton said the action aims to ensure the state can collect any future penalties and hold the company accountable “for putting profits ahead of the health of Texans.”
A spokesperson with Kenvue provided KPRC 2 with the following statement on the situation:
“We are taking immediate legal action to stop the plaintiffs’ attorneys representing the State of Texas from continuing to drive these reckless and scientifically unsound theories.
These politically and financially motivated actions will have a detrimental impact on public health for our consumers in this state.
We will do everything in our power to stand up for sound, credible science."
READ MORE: Texas lawsuit against companies behind Tylenol asserts unproven claims of autism risk