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 complaint filed in state court in Delaware on Tuesday claims Halyard agreed to indemnify Kimberly-Clark for all costs tied to a lawsuit by a Los Angeles surgeon over the companies’ MicroCool surgical gowns. Kimberly-Clark says Halyard must pay its $350 million punitive damages portion of the jury verdict, according to court filings.
Halyard Health filed its own suit in state court in California Monday claiming its not obligated to indemnify Kimberly-Clark for the $350 million award. The Alpharetta, Georgia-based company makes surgical masks, gloves and pain-pump accessories.
To contact the reporter on this story: Jef Feeley in Wilmington, Delaware at jfeeley@bloomberg.net.
To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Sophia Pearson
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