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.