Texas can't stop the makers of Tylenol from marketing the drug as safe for children and pregnant women or halt a nearly $400 million payment to shareholders, a state court ruled on Friday, rejecting arguments by Attorney General Ken Paxton's motion.

Judge LeAnn Rafferty of Panola County District Court denied the state's bid for a temporary restraining order, which would have blocked pharmaceutical company Kenvue Inc. from paying shareholders a scheduled $0.20 per share dividend.

Paxton, whose litigation promotes President Donald Trump's claim that Tylenol causes autism, also sought to stop Kenvue from marketing the drug as safe and effective for pregnant women and young children. Judge Rafferty denied this request as well.

In a statement to Law360, Kenvue said it will "stand up for sound, credible science."

"This attempt by plaintiffs' counsel and the State of Texas reached far beyond the state's jurisdiction, defied science, and placed the health of women and children at risk," the company said. "Their tactics are politically and financially motivated and have nothing to do with the health and safety of consumers."

The suit, which also names Johnson & Johnson as a defendant, seeks billions of dollars in damages under the state's Deceptive Trade Practices Act. It leans on medical claims coming from the White House.

The U.S. Food and Drug Administration announced in September it would propose updated labeling to reflect evidence that acetaminophen "may be associated" with an increased risk of autism spectrum disorder and attention deficit hyperactivity disorder.

Texas is represented by its attorney general's office and Ashley C. Keller, John J. Snidow, John M. Masslon II and Roseann R. Romano of Keller Postman LLC.

Johnson & Johnson and Kenvue are represented by Kim Bueno, Jessica Davidson, Kristen Fournier, Geoff Wyatt, Jordan Schwartz and Eugene Temchenko of Kirkland & Ellis LLP.

The case is the State of Texas v. Johnson & Johnson et al., case number 2025-348, in the 123rd District Court of Panola County, Texas.