Texas Attorney General Ken Paxton on Tuesday accused the companies behind Tylenol of deceptively marketing the pain reliever to pregnant mothers in a lawsuit that asserted unproven claims that early exposure to acetaminophen increased risk of autism and other disorders.
Paxton, an ally of President Donald Trump and a Republican candidate for U.S. Senate, announced the suit against Johnson & Johnson and Kenvue weeks after Trump and Health Secretary Robert F. Kennedy Jr. asserted an unproven link between the pain reliever and autism while announcing a wide-ranging effort to study the causes of the complex brain disorder.
The suit alleges that the companies violated Texas consumer protection laws by hiding the danger that acetaminophen, the active ingredient in Tylenol, posed to fetuses and young children and “deceptively marketed Tylenol as the only safe painkiller for pregnant women.”
It also alleges that Johnson & Johnson fraudulently transferred liabilities arising from Tylenol to Kenvue to shield assets against lawsuits.
In 2021, New Brunswick, New Jersey-based J&J announced that it would turn its consumer health business, which makes Tylenol and other products, into a separate company now known as Kenvue. It referenced that divestment in a statement Tuesday, saying “all rights and liabilities associated with the sale of its over-the-counter products, including Tylenol (acetaminophen), are owned by Kenvue."
“Big Pharma betrayed America by profiting off of pain and pushing pills regardless of the risks. These corporations lied for decades, knowingly endangering millions to line their pockets,” Paxton said in a statement. “Additionally, seeing that the day of reckoning was coming, Johnson & Johnson attempted to escape responsibility by illegally offloading their liability onto a different company.”
Acetaminophen has long been one of the most popular pain relievers and fever reducers in the U.S., used by upward of 100 million Americans annually. Some studies have raised the possibility that taking Tylenol in pregnancy might be associated with a risk of autism — but many others haven’t found a connection.
Kenvue stressed in a statement Tuesday that acetaminophen is the safest pain reliever option for pregnant women, noting that high fevers and pain are recognized as potential risks to pregnancies if left untreated. The Summit, New Jersey-based company said it would defend itself against the claims and expressed concern about the “perpetuation of misinformation” about acetaminophen's safety and the potential impact on the health of women and children.
“We stand firmly with the global medical community that acknowledges the safety of acetaminophen and believe we will continue to be successful in litigation as these claims lack legal merit and scientific support,” Kenvue said.
Kenvue has said it faces litigation in federal court over the autism claims, noting earlier this year in an annual filing that many of those claims have been dismissed but are being appealed.
The lawsuit filed in state court in rural Panola County asks for a jury trial in the Republican-leaning county of about 23,000 in East Texas.
Texas is asking the court to order the companies to pay the state $10,000 for each Deceptive Trade Practices-Consumer Protection Act violation. It also asks the court to order the companies to destroy marketing materials that represent that Tylenol is safe for pregnant women and children or doesn’t cause autism or attention-deficit/hyperactivity disorder in children whose mothers take Tylenol during pregnancy or in young children who take the drug.
FILE - Tylenol pain relief products are shown on a store shelf in Carmel, Ind., Sept. 23, 2025. (AP Photo/Michael Conroy, file)
NEW YORK (AP) — Stocks are rushing higher worldwide, and oil prices are easing Wednesday as hopes build that the war with Iran could end soon. That's even though some of the signals investors saw as hopeful are already under dispute, and several prior bouts of optimism in financial markets quickly got undercut by continued, fierce fighting in the war.
The S&P 500 rose 0.8% and added to its leap from the day before, which was its best since last spring. That followed even bigger gains for stock markets across Europe and Asia, including an 8.4% surge in South Korea, which were catching up to Wall Street’s rally from Tuesday.
The Dow Jones Industrial Average was up 357 points, or 0.8%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 1.2% higher.
Oil prices also fell back toward $100 per barrel after President Donald Trump claimed shortly before Wall Street began trading that Iran “has just asked the United States of America for a CEASEFIRE!”
“We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!”
Trump had also said the night before that the U.S. military could end its offensive in two to three weeks. That added to optimism following a couple tenuous signals of hope from earlier Tuesday that Wall Street latched onto, including a news report quoting Iran’s president as saying that it has “the necessary will to end the war” as long as certain requirements are met, including “guarantees to prevent a recurrence of aggression.”
The worry on Wall Street has been that the war may last a long time and keep oil and natural gas from the Persian Gulf out of global markets, which could create a brutal blast of inflation.
But hope has been quick to reverse to doubt on Wall Street, triggering manic swings back and forth for financial markets since the war with Iran began. Trump has also made statements that lifted markets, only to see the gains quickly disappear after increasing his military threats against Iran. Investors say Trump’s statements are becoming less impactful for financial markets.
Iran’s Foreign Ministry spokesman, Esmail Baghaei, called Trump’s claim about asking for a ceasefire “false and baseless,” according to a report on Iranian state television.
And oil prices remain high, even if they’ve eased so far this week. The price for a barrel of Brent crude oil, the international standard, was sitting at $101.83 following its declines, which is still up from roughly $70 before the war began.
U.S. gasoline prices rose again overnight to a national average of $4.06 per gallon, according to the auto club AAA.
Iran, meanwhile, hit an oil tanker off the coast of Qatar and Kuwait’s airport on Wednesday while airstrikes battered Tehran as the fighting continued. Iran also continues to hold a grip on the Strait of Hormuz, where a fifth of the world’s traded oil passes during peacetime.
“De-escalation hopes have given markets a lift, but we think the effects of the war would, in many cases, persist even if the war did end soon,” Thomas Mathews, head of markets, Asia Pacific at Capital Economics, said in a research note Wednesday.
“It’s worth thinking through how markets might fare if the war were to end ‘very soon,’” he wrote. “Do markets have further to recover if sentiment continues to improve? The answer is almost certainly yes.”
The White House said Trump will deliver a public address Wednesday evening on the Iran war.
On Wall Street, the majority of stocks rose, with Big Tech powering the move higher. Gains of 2.5% for Alphabet and 1% for Nvidia were two of the strongest forces lifting the S&P 500.
They helped offset a 14.3% drop for Nike, which fell even though it reported a stronger profit for the latest quarter than expected. Analysts said it gave some lackluster financial forecasts.
Hasbro fell 3.8% after the toy company found someone had gained unauthorized access to its computer network and is working to assess the full impact.
In stock markets abroad, indexes leaped more than 1.5% in France, Germany and the United Kingdom. Asian markets had even bigger gains.
Tokyo’s Nikkei 225 jumped 5.2% after a survey by Japan’s central bank showed business sentiment for major Japanese manufacturers improved despite worries about the Iran war.
In the bond market, Treasury yields held relatively steady after a report said U.S. retailers made more money in February than economists expected. A separate report said U.S. manufacturing growth last month was slightly faster than economists expected.
The 10-year Treasury yield rose to 4.31% from 4.30% late Tuesday.
AP Business Writers Chan Ho-him and Matt Ott contributed.
James Conti works on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
Philip Finale works on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top center left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
A screen displays financial information on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
