Texas Attorney General Ken Paxton has asked a judge to block Johnson & Johnson’s Kenvue division from distributing $400 million in dividends to shareholders due to the state’s ongoing lawsuit against the company. The case claims that Kenvue failed to warn consumers about potential autism risks associated with taking Tylenol during pregnancy.
The request is seen as unusual and may have significant implications for Kenvue’s stock price. Major medical associations dispute Paxton’s allegations, stating that there is limited scientific evidence supporting a link between Tylenol and autism.
Kevue’s parent company, Johnson & Johnson, has seen its stock fall 30% since comments from U.S. Health Secretary Robert F. Kennedy Jr. and former President Donald Trump sparked concerns about the medication’s safety during pregnancy.
Experts say that blocking dividends could put significant pressure on Kenvue to settle the lawsuit, which could lead to a more favorable outcome for the state of Texas. However, the case is still in its early stages, and it remains unclear whether Paxton’s office will ultimately succeed in their efforts to block dividend payments.
Source: https://www.texastribune.org/2025/11/06/ken-paxton-tylenol-lawsuit-block-shareholder-payments