Attorney General Ken Paxton landed a major blow against Johnson & Johnson and its affiliate Kenvue for operating unlawfully in Texas. As reported by the Office of the Attorney General, a district court granted a Temporary Restraining Order (TRO), signaling that Johnson & Johnson and Kenvue were doing business without proper registration, a violation of Texas law.
In detail, the TRO is based on allegations that both companies have bypassed Chapter 9 of the Texas Business Organizations Code by not maintaining active registrations. The Court has set December 15 as the date for deciding whether or not the two entities can continue their operations in Texas past this legal impediment. In the meantime, registration would subject them to personal jurisdiction by Texas courts in any related case filed in the state, a fact underscored by the legal proceedings.
"I will not allow Big Pharma to operate above the law or put their greed ahead of Texans’ well-being," Paxton was quoted in the state's press release. Both J&J and Kenvue stand accused of prioritizing profits over ethical conduct and legal responsibilities, as billions in revenue continue to flow from Texan consumers without the companies adhering to state business regulations.
This stern action taken by the Attorney General aims to reinforce the state's stance on corporate responsibility and legal compliance. Despite their substantial sales in Texas, the two foreign companies have neglected to maintain their business registrations with Johnson & Johnson, even allowing theirs to lapse. This maneuver suggests an effort to protect themselves from consumer litigation and reinforces the state's resolve to enforce its laws, protecting its citizens from potential corporate malfeasance.
Attorney General Paxton has a clear message: companies, no matter how large, will be held to Texas’ standards. He claims a dedication to fight Big Pharma and maintain the precedence of Texans’ health over illegal profits. As the December 15 court decision approaches, it will determine whether Johnson & Johnson and Kenvue will be required to either comply or halt their business operations in the state – a consequential juncture for corporate compliance in Texas, as per the Office of the Attorney General.
