Texas Attorney General Ken Paxton has gone to court to stop consumer health company Kenvue from handing out a nearly $400 million shareholder dividend, arguing that the firm should preserve its cash as it faces mounting legal storms over Tylenol’s alleged links to autism and other health claims.
The request, filed in state court Thursday, follows Paxton’s lawsuit accusing Kenvue and its former parent, Johnson & Johnson, of hiding potential dangers of acetaminophen use during pregnancy. The suit was filed just weeks after former President Donald Trump reignited claims—still unsubstantiated by science—that the popular pain reliever may cause autism in unborn children.
Paxton said the dividend, scheduled for November 26, would be a “fraudulent transfer” under Texas law, claiming Kenvue could already be teetering on insolvency given its exposure to billions in potential damages. “It’s hard to think of a more classic example of a fraudulent transfer than this,” he said, insisting the company must hold onto cash while litigation unfolds.
Medical experts, however, continue to consider acetaminophen-based products such as Tylenol the safest option for managing fever and pain during pregnancy. Kenvue, now headquartered in Summit, New Jersey, has consistently defended Tylenol’s safety and said Texas is pushing “reckless and scientifically unsound theories” that could harm public trust.
The legal fight also casts a shadow over Kenvue’s recently announced $40 billion acquisition deal with Kimberly-Clark, the maker of Kleenex and Huggies. The merger—intended to expand Kimberly-Clark into higher-margin wellness and skincare brands such as Band-Aid, Listerine, and Neutrogena—now faces investor skepticism. Kimberly-Clark’s shares plunged nearly 15% after the announcement, with analysts citing fears of prolonged Tylenol-related litigation.
Despite the turbulence, Kenvue’s stock ticked up 1.7% in late morning trading. The company has vowed swift legal action to counter Texas’ move, arguing that politics, not science, is driving the challenge.
Paxton, who filed the suit in deeply conservative Panola County, Texas—where Trump won over 80% of the vote—is simultaneously campaigning for a U.S. Senate seat in 2026, adding a sharp political undertone to a case already charged with scientific and corporate controversy.
