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Texas judge in Tylenol case won't block Kenvue's $398 million dividend payment
Texas AG alleges Kenvue failed to warn about autism risks from prenatal Tylenol use; $400 million dividends approved despite ongoing lawsuit.
- Judge LeAnn Rafferty, Panola County judge, declined to enjoin Kenvue, maker of Tylenol, from distributing $400 million in dividends, allowing the payment to proceed on Nov. 26.
- Texas Attorney General Ken Paxton filed suit last month in Panola County, Texas , alleging Kenvue, maker of Tylenol, failed to warn of autism risks from prenatal use.
- Kenvue's lawyer told Reuters the dividend is routine and argued Texas lacks jurisdiction since Kenvue is based in New Jersey and incorporated in Delaware, while Ken Paxton cited a narrow state law exception to block it.
- Legal experts warned that barring dividends would likely plummet Kenvue's stock and could push the company toward settlement, imposing short-term pain amid a 30% stock decline and $40 billion Kimberly-Clark talks.
- Specialized business courts created in 2023 did not take this dispute, which remains in a local Panola County court amid debate over U.S. Health Secretary Robert F. Kennedy Jr.'s label changes and unsettled science, major medical associations said.
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Texas judge in Tylenol case won't block Kenvue's $398 million dividend payment
A Texas judge cleared the way for Kenvue to pay a $398 million shareholder dividend this month, a win for the U.S. consumer health company in a politically-charged legal battle over the safety of using Tylenol during pregnancy.
·United Kingdom
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Total News Sources8
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
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