Kimberly-Clark Sues Halyard Over $350M Verdict Duty Claim

Law360, Wilmington (May 2, 2017, 4:51 PM EDT) -- Kimberly-Clark Corp. opened its half of a cross-country battle with spinoff Halyard Health Inc. on Tuesday over who must pay a $350 million or more punitive damages award for fraudulent claims about the safety of surgical gowns, saying in a Delaware lawsuit that Halyard gets the tab.

The Delaware Chancery Court complaint was filed one day after Halyard claimed in a new California Superior Court lawsuit that its 2014 spinoff agreement "does not expressly state" that Halyard must indemnify Kimberly-Clark for fraud, willful wrongdoing or punitive damages in a case that produced an overall judgment of more than $454 million....

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