Texas Attorney General Ken Paxton has launched a legal battle against pharmaceutical giant Kenvue, seeking to block the company from distributing $400 million in dividends to shareholders amid allegations of deceptive marketing practices for Tylenol products.
In a filing this week, Paxton requested a court order to prevent the November 26 dividend payout, arguing that the funds should be preserved to pay potential damages to Texans harmed by what he describes as “illegal and unethical actions” related to Tylenol marketing, particularly to pregnant women.
Consumer Protection at the Core
“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 stated in his announcement of the legal action.
The lawsuit alleges that Johnson & Johnson and its consumer health spinoff Kenvue violated Texas consumer protection laws by marketing acetaminophen—Tylenol’s active ingredient—as safe for use during pregnancy while supposedly ignoring evidence that links prenatal exposure to autism and ADHD in children.
“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks,” Paxton declared in a news release accompanying the suit. “These corporations lied for decades, knowingly endangering millions to line their pockets.”
Beyond blocking the dividend payment, Paxton has also asked a federal judge to issue a restraining order that would force Tylenol’s makers to immediately stop advertising the product as safe for pregnant women and young children—a claim he says contradicts guidance from federal health authorities.
Kenvue Pushes Back
Is there any merit to these serious allegations? Kenvue doesn’t think so.
The company has vigorously defended its products, asserting that “acetaminophen is the safest pain reliever option for pregnant women as needed throughout their entire pregnancy.” In its public response, Kenvue emphasized that acetaminophen is one of the most extensively studied pain relievers and fever reducers available, denying any proven link between the medication and autism.
According to the motion filed by Paxton’s office, allowing Kenvue to distribute the $400 million dividend could potentially render the company insolvent when forced to pay financial penalties related to the alleged deceptive marketing practices. The lawsuit claims Kenvue “continue[s] 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.”
This legal battle represents one of several recent aggressive actions by state attorneys general against pharmaceutical companies over marketing practices and product safety claims. The Texas case, however, stands out for its attempt to freeze shareholder dividends before any judgment has been rendered.
For now, millions of Texans who have used Tylenol during pregnancy are left waiting to see whether the courts will validate Paxton’s claims or side with a company that has long positioned its product as the gentlest option in medicine cabinets across America.
