Ken Paxton, the Republican attorney general of Texas, sued Kenvue, the manufacturer of Tylenol, on Tuesday, for “deceptively marketing Tylenol to pregnant mothers despite knowing that early exposure to acetaminophen leads to a significantly increased risk of autism and other disorders,” according to the press release.
Acetaminophen, the active ingredient in Tylenol, is not known to cause autism. Credit: Kenvue
J&J illegally offloaded liability, Paxton claims
Paxton also claimed that “Johnson & Johnson attempted to escape responsibility by illegally offloading their liability onto a different company.” The suit is filed against Johnson & Johnson, which sold Tylenol for decades, and Kenvue, the spinoff company that has sold Tylenol since 2023.
The suit claims that the companies violated Texas’s consumer protection laws and the Texas Uniform Fraudulent Transfer Act.
This is the latest episode in the saga that Donald Trump began last month when he claimed that the use of Tylenol during pregnancy can cause autism. The link between acetaminophen and autism is unproven. In a related episode last week, the Informed Consent Action Network (ICAN) filed a petition with the FDA requesting changes to Tylenol’s warning label.
The new suit is not the first time Paxton has gone head to head with Johnson & Johnson. In June 2024, he reached a $700 million settlement with the company over safety claims of its talc-based baby powder. Paxton has also sued Pfizer over the COVID-19 vaccine and Eli Lilly over claims that it bribed providers to prescribe its medications. A federal district judge dismissed the Pfizer lawsuit in December 2024, but Paxton appealed the decision in January 2025.
Kenvue refuses to back down
In a response to the filing, Kenvue released a statement saying, “Rigorous, independent research, endorsed by leading medical professionals and global health regulators, confirms that there is no proven link between taking acetaminophen and autism.”
The company said it will “vigorously” defend itself against Paxton’s claims and believes it will be successful in litigation.
Kenvue stock is down 3.42% today, and Johnson & Johnson has dipped 1.79%. William White for TipRanks reported that “Wall Street analysts’ consensus rating for Kenvue is Moderate Buy, based on five Buy and eight Hold ratings over the past three months. With that comes an average KVUE stock price target of $19.91, representing a potential 34.66% upside for the shares,” this morning.
Trefis Team for Great Speculations stated: “The legal and reputational issues will not disappear quickly, and the departure of the CEO introduces uncertainty regarding execution. Until the courts provide clarity on liability and the new leadership presents a long-term strategy, the stock may struggle to see a significant re-rating,” in an article published yesterday. The article advises investors to manage their expectations and take a cautious approach, waiting for more transparent direction from Kenvue.
Filed Under: Neurological Disease, Pediatrics
