Texas Attorney General Ken Paxton has filed a second legal action against Kenvue and Johnson & Johnson, seeking to block a $400 million dividend payout that he argues would hinder the state’s’ ability to recover potential civil penalties tied to Tylenol’s alleged risks.
The motion, filed Nov. 5, follows an Oct. 26 lawsuit from the Texas attorney general accusing the companies of deceptively marketing Tylenol to pregnant women while withholding evidence linking acetaminophen to increased risks of autism spectrum disorder and ADHD in children.
That original complaint also alleged Johnson & Johnson violated state law by offloading liability onto Kenvue through a 2022 spinoff. The consumer health company now markets Tylenol and faces litigation across multiple states.
The new motion seeks to prevent Kenvue from issuing a $0.2075 per-share dividend Nov. 26, totaling approximately $400 million. Texas argues the dividend would constitute a fraudulent transfer, diminishing Kenvue’s ability to pay, if found liable. The state is also seeking an injunction to stop what it calls ongoing deceptive marketing.
Kenvue has denied wrongdoing and said it will “vigorously defend” against the claims, which it says are unsupported by legal or scientific evidence. A 2024 Swedish study of more than 2 million children found no association between prenatal acetaminophen use and risk of autism, ADHD or intellectual disability.
Texas’ lawsuit comes amid federal efforts to review acetaminophen safety labeling and growing political attention, including a September statement from President Donald Trump advising pregnant women to avoid Tylenol unless medically necessary.
