Paxton Fights to Stop the Manufacturer of Tylenol from Fraudulently Paying Dividends
November 6, 2025 – Texas Attorney General Ken Paxton has filed a motion to block a scheduled dividend payment from Kenvue, the maker of Tylenol, arguing that the payout would strip the company of funds it needs to compensate Texans harmed by the company’s alleged misconduct.
The motion, filed Monday, seeks to halt a planned November 26 dividend that Paxton says would “fraudulently drain” Kenvue of hundreds of millions of dollars while it faces billions in potential liabilities tied to deceptive marketing practices.
The filing follows Paxton’s lawsuit last week against Kenvue and its former parent company, Johnson & Johnson, alleging that the companies knowingly marketed Tylenol to pregnant women while concealing evidence linking acetaminophen exposure to an increased risk of Autism and ADHD in children. Paxton also accused Johnson & Johnson of structuring a corporate spinoff to shield itself from financial accountability.
“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,” Paxton said in a statement.
The Attorney General’s motion asks a judge to prohibit Kenvue from issuing dividends or disposing of major assets until the case concludes. Paxton’s office is also seeking an injunction to stop Kenvue’s alleged misleading marketing practices.
Officials say the legal action aims to ensure Kenvue remains solvent and capable of compensating Texans if the state prevails in court.
