Texas Attorney General Ken Paxton has taken aim at Tylenol maker Kenvue, filing a motion to block the company from paying out a $400 million dividend to shareholders next week — a move he claims would drain funds needed to compensate Texans allegedly harmed by the pain reliever.
The legal action, filed Thursday, seeks to prevent Kenvue from making the scheduled November 26 dividend payment amid allegations that the company and its former parent Johnson & Johnson deceptively marketed Tylenol to pregnant women despite knowing potential risks to developing fetuses. “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 declared in a statement.
Autism and ADHD Allegations
At the heart of the dispute is Paxton’s claim that Kenvue and J&J knowingly downplayed evidence suggesting acetaminophen — Tylenol’s active ingredient — may increase autism and ADHD risks when taken during pregnancy. The lawsuit also alleges that J&J strategically spun off Kenvue last year to shield itself from mounting financial liability related to these issues.
“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 stated.
Beyond blocking the dividend payment, the Texas AG is seeking a court order to prevent Kenvue from making any extraordinary asset dispositions until the case concludes — essentially freezing the company’s financial maneuverability to ensure funds remain available for potential penalties. “I will be relentless in working to secure a just outcome when companies hurt our citizens,” Paxton vowed.
Marketing Under Scrutiny
Is Tylenol actually dangerous for pregnant women? That’s the question at the center of this high-stakes legal battle.
Paxton’s lawsuit demands that Kenvue stop advertising Tylenol as safe for pregnant women and young children, pointing to federal health guidance urging caution. “Kenvue continues to falsely assure Texans that Tylenol is entirely safe — contrary to the specific instructions of the federal health authorities and indeed the President of the United States,” according to documents reviewed by ABC News.
Federal health authorities have advised physicians to minimize acetaminophen use during pregnancy, particularly for routine low-grade fevers, citing studies that suggest a correlation between prenatal exposure and autism. The Texas AG’s office claims that Johnson & Johnson and Kenvue not only ignored scientific evidence linking prenatal acetaminophen exposure to developmental disorders but actively worked to silence it.
“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks,” Paxton’s office alleged in court documents.
Kenvue Pushes Back
Kenvue has forcefully denied the allegations, standing by its signature product that millions of Americans reach for when headaches strike. The company maintains that acetaminophen remains “the safest pain reliever option for pregnant women as needed throughout their entire pregnancy,” according to a statement on its website.
The company points to decades of research supporting Tylenol’s safety profile. “Acetaminophen is one of the most widely studied pain relievers,” Kenvue said, adding that “there is no proven link between acetaminophen and autism” based on “rigorous independent research and global health regulators.”
But Paxton’s lawsuit tells a different story, suggesting the corporate spin-off that created Kenvue was deliberately designed to shield Johnson & Johnson from financial fallout. The legal action alleges J&J “fraudulently shifted liabilities to Kenvue to avoid litigation” — essentially creating a corporate firewall against mounting lawsuits.
Still, Kenvue stands firm that scientific consensus supports its position. “Medical providers and health authorities agree current evidence does not support claims that acetaminophen causes autism,” the company emphasized, noting that “numerous randomized, controlled clinical trials support the safety of acetaminophen in infants and children when used as directed.”
With hundreds of millions in shareholder dividends now hanging in the balance and potentially billions in liability at stake, this battle over one of America’s most recognized medicine cabinet staples appears poised to become a landmark case in pharmaceutical accountability — and a test of whether corporate restructuring can shield companies from the consequences of their marketing practices.
