Kimberly-Clark Corporation announced it will challenge the recent verdict in a California class action lawsuit involving MicroCool surgical gowns sold by Halyard Health, its former health care business.

Nearly 70 million MicroCool gowns have been sold without a single complaint of an injury. The Company believes the jury’s verdict is contrary to the evidence presented at trial and that its punitive damages award is baseless, excessive and not consistent with California and federal laws. The Company therefore intends to challenge the verdict in post-judgment motions in the District Court and, depending upon the rulings on those motions, to appeal to the United States Court of Appeals for the Ninth Circuit.

Based on its confidence in the success of its challenge to the verdict, as well as an indemnification agreement with co-defendant Halyard Health, (which was spun off from Kimberly-Clark at the end of 2014) under which Halyard Health must cover Kimberly-Clark’s losses, claims and expenses related to this litigation, Kimberly-Clark believes the final outcome of this litigation will not result in any material financial exposure for the company.