WEDNESDAY, Oct. 29, 2025 (HealthDay News) — Texas Attorney General Ken Paxton has filed a lawsuit accusing Kenvue, the maker of Tylenol, and its former parent company, Johnson & Johnson, of misleading consumers about the safety of the popular pain reliever during pregnancy.

The suit alleges that Kenvue hid autism risks of its popular pain reliever despite doctors saying it is safe to take during pregnancy.

Tylenol maker Kenvue said Texas' claims "lack legal merit and scientific support" and vowed to defend itself in litigation.

Canaccord said the headlines are likely to distract management and stall Kenvue’s operational turnaround, which had shown early progress earlier this year. The firm noted that Kenvue’s skin health and beauty segment, particularly Neutrogena, was improving, and cost savings followed its separation from Johnson & Johnson in 2023.

The state of Texas sued Johnson & Johnson and Kenvue Tuesday, alleging the companies hid the risks of autism and other disorders if mothers take Tylenol during pregnancy.

Tylenol, a popular over-the-counter pain reliever whose active ingredient is acetaminophen, is made by Kenvue, a spinoff of Johnson & Johnson. In early spring, the company moved its global headquarters to New Jersey, cutting the ribbon on the new location with Gov. Phil Murphy and then-Kenvue CEO Thibaut Mongon.

Renaissance Capital's bet on Kenvue is a bold one. The stock has performed poorly since the consumer health business spun off from Johnson & Johnson in 2023. At recent prices, the stock has lost about 45% of its value since its market debut a couple of years ago.

Kenvue (NYSE:KVUE), the consumer healthcare spin-off from Johnson & Johnson, has experienced a significant decline in its stock price in recent months.