News and Events for Attorneys and Executives

Kimberly-Clark Sues Spinoff Over $454 Million Gown Verdict

Bloomberg is reporting that Kimberly-Clark Corp. sued its spinoff Halyard Health Inc., claiming it wrongfully refused to pick up the entire tab for a $454 million verdict against the companies over the safety of some of their surgical gowns.

The plaintiff claims Halyard agreed to indemnify Kimberly-Clark for all costs tied to a lawsuit that accused the companies of misleading consumers about the safety of their MicroCool surgical gowns.

In its suit, Kimberly-Clark claims that Halyard must pay its $350 million punitive-damages portion of the jury verdict in the class-action case, reports Jef Feeley.

Halyard Health, which makes surgical masks, gloves and pain-pump accessories, filed its own suit in California, claiming it’s not obligated to cover litigation costs.

Read the Bloomberg article.


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