Texas Attorney General Ken Paxton has filed a lawsuit against Johnson & Johnson (NYSE:JNJ) and Kenvue Inc (NYSE:KVUE), accusing the companies of misleading pregnant women about the safety of Tylenol despite evidence suggesting its active ingredient, acetaminophen, may increase the risk of autism and attention disorders in children.

According to Paxton's office, Johnson & Johnson "deceptively marketed" Tylenol as a safe pain reliever for pregnant women while being aware of research linking prenatal exposure to acetaminophen with higher incidences of Autism Spectrum Disorder (ASD) and Attention-Deficit Hyperactivity Disorder (ADHD).

Also Read: Tylenol Turmoil: Partisan Politics Fuel Confusion Over Pregnancy Risks, Poll Shows

The complaint alleges that the company "willfully ignored" scientific findings and "attempted to silence" emerging studies that questioned Tylenol's safety profile.

The suit points to a "considerable body of evidence," which the attorney general said was underscored during the Trump administration, highlighting the risks associated with early-life acetaminophen exposure.

In addition to deceptive marketing, Paxton accused Johnson & Johnson of violating the Texas Uniform Fraudulent Transfer Act.

The company allegedly transferred liabilities tied to Tylenol to its consumer health spinoff, Kenvue, as part of a corporate restructuring designed to insulate Johnson & Johnson from future legal exposure.

In September, Kenvue interim CEO Kirk Perry met privately with Health Secretary Robert F. Kennedy Jr. to argue that there is no proven link between the popular pain reliever Tylenol and autism.

Kenvue also emphasized that acetaminophen is one of the few safe options for managing pain and fever during pregnancy, as alternatives like ibuprofen can pose risks such as birth defects. Some studies even link untreated fevers during pregnancy to developmental issues.

The attorney general has previously filed suits against Pfizer Inc. (NYSE:PFE) over its COVID-19 vaccine and Eli Lilly and Co. (NYSE:LLY) for allegedly bribing healthcare providers to prescribe its drugs.

Paxton also referenced his prior legal success against Johnson & Johnson, which resulted in a $700 million settlement for deceptive marketing of its talc-based baby powder products.

Price Action: JNJ stock is down 1.64% at $187.18 at the last check on Tuesday.

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