A bid by Kenvue (KVUE) to dismiss a lawsuit brought against it by Texas Attorney General Ken Paxton accusing the company of hiding the risk of autism and ADHD in children whose pregnant mothers took Tylenol was rejected by a judge Thursday.
Panola Co. District Court Judge LeAnn Rafferty did not explain her decision in a brief order, Reutersreported.
Paxton’s case claims that Kenvue and Johnson & Johnson (JNJ) are in violation of the Texas Uniform Fraudulent Transfer Act “by fraudulently transferring liabilities arising from Tylenol to a separate company, Kenvue, in order to shield their assets against lawsuits arising from the harmful impact Tylenol had on children.”
A request for comment from Kenvue has yet to be returned to Seeking Alpha. Kenvue has set up a website addressing the claims.
Tylenol was previously sold by Johnson & Johnson Consumer Health before it being spun-off with an IPO in 2023.