Texas Office of Attorney General
11/06/2025 | Press release | Distributed by Public on 11/06/2025 07:32
Attorney General Ken Paxton Fights to Stop the Manufacturer of Tylenol from Fraudulently Paying Dividends to Avoid Facing Justice
Attorney General Ken Paxton filed a motion to stop Kenvue from paying a November 26 dividend that would drain the company of hundreds of millions of dollars it will need to pay Texans for its illegal and unethical actions.
The motion was filed after Attorney General Paxton last week sued Kenvue and Johnson & Johnson for deceptively marketing Tylenol to pregnant mothers despite knowing that exposure to the drug's only active ingredient, acetaminophen, carries an increased chance of Autism and Attention-Deficit Hyperactivity Disorder ("ADHD") in children. The lawsuit was also filed to hold Johnson & Johnson accountable for its illegal corporate spinoff that was designed to evade financial responsibility.
"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," said Attorney General Ken Paxton. "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. I will be relentless in working to secure a just outcome when companies hurt our citizens, and part of that process is ensuring that companies actually pay Texas when they break the law."
The combined legal exposure that Kenvue faces for its illegal actions totals billions of dollars that will likely need to be paid for its deeply unethical and unlawful behavior. However, paying fraudulent dividends could make Kenvue insolvent when the company is forced to pay financial penalties for its actions. Because of that, Attorney General Paxton's motion asks a judge to bar Kenvue from paying any dividends or making any extraordinary or non-ordinary-course dispositions of corporate assets until a final judgment has been rendered in this case. Attorney General Paxton is also a seeking an injunction to stop Kenvue's illegal and misleading marketing practices.
This will help guarantee that Kenvue actually pays the State of Texas for putting profits ahead of the health of Texans.
To read the motion, click here.
Texas Office of Attorney General published this content on November 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 06, 2025 at 13:33 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]