Post by : Badri Ariffin

In a high-profile legal challenge, Texas Attorney General Ken Paxton is seeking to block Kenvue from paying a $398 million dividend to shareholders while questioning the safety of Tylenol use during pregnancy. The case, scheduled for a hearing Friday in Carthage, Texas, has drawn national attention for its political and medical implications.

Paxton filed the lawsuit on October 28, accusing Kenvue of hiding potential risks to children from prenatal use of Tylenol. The Texas Republican has aligned this move with claims promoted by former President Donald Trump and U.S. Health and Human Services Secretary Robert F. Kennedy Jr., who suggested, without scientific consensus, that acetaminophen might increase autism risk when used during pregnancy.

Kenvue, which was spun off from Johnson & Johnson in 2023, insists that Tylenol is safe, echoing decades of research and medical guidance that support acetaminophen as a preferred option for treating fever and pain in expecting mothers. Johnson & Johnson has also defended the product, highlighting its long-standing track record.

The dispute over Tylenol’s safety coincides with Kimberly-Clark’s $40 billion acquisition bid for Kenvue, which would expand the company’s portfolio into higher-margin categories including skincare, oral care, and baby products. Kenvue brands include Neutrogena, Band-Aid, Johnson’s Baby shampoo, and Listerine. The lawsuit has cast a shadow over the merger and raised questions about corporate governance and liability shielding through spinoffs.

Paxton’s legal filings emphasize the need to preserve Kenvue’s cash reserves, warning that potential lawsuits over Tylenol and previous talc-related cases could threaten the company’s solvency. He also argued that the state has the right to prevent Kenvue from promoting Tylenol as safe under regulations governing misleading commercial speech.

Kenvue and Johnson & Johnson countered that Paxton’s requests are unprecedented, arguing that a Texas court lacks jurisdiction over New Jersey-based companies and their spinoffs. They warned that blocking dividend payments or controlling product messaging could “constitute a tsunami of illegality,” undermining the credibility of the state judiciary.

With the hearing set for 9 a.m. CST, all eyes will be on the Panola County courthouse as legal, corporate, and political tensions collide over one of America’s most familiar household medicines.

#Business News #Economic