L’Oreal has engaged restructuring advisers to explore options for rising legal liabilities in the United States linked to talc and other chemical ingredients used in some of its cosmetic products, the Wall Street Journal reported on Monday.
L’Oreal’s US unit is working with restructuring law firm Weil Gotshal & Manges and investment bank Ducera Partners to address lawsuits brought by individuals alleging that talc-containing products caused illness, the Journal reported, citing people familiar with the matter.
The company disclosed in its latest half-year report that about 760 US proceedings involving allegations over the presence of asbestos particles in some talc-containing cosmetic products were pending as of June 30. That was an increase from about 620 proceedings at the end of 2025. L’Oreal said it strongly contests the claims.
According to the Journal, one option under consideration is transferring the tort liabilities into a separate corporate entity and then selling that entity to an outside investor. Such a structure would allow L’Oreal to separate the disputed liabilities from its operating businesses.
The advisers are also examining alternatives to Chapter 11 bankruptcy, including a transaction similar to Honeywell’s divestiture last year of certain asbestos liabilities to corporate liability acquisition platform Delticus, the Journal reported.
L’Oreal, Weil Gotshal & Manges and Ducera Partners did not immediately respond to Reuters requests for comment.
Talc litigation has generated major liabilities across the cosmetics and consumer-products industries. Johnson & Johnson has spent more than a decade fighting lawsuits over its talc products and in July said it would pay an estimated $5.5 billion to resolve tens of thousands of claims alleging that its baby powder and other talc products caused ovarian cancer.
Johnson & Johnson had previously attempted to resolve the litigation through three bankruptcy filings involving a shell-company subsidiary, but each effort ended in dismissal.
Other companies have also turned to bankruptcy proceedings to deal with talc-related claims. Avon Products, the US-based holding company of the Avon beauty brand, began Chapter 11 proceedings in 2024 to address debt and legacy liabilities, including claims involving talc.
L’Oreal is facing legal pressure beyond its talc products. The company is also confronting thousands of lawsuits alleging that its hair-relaxer products could cause cancer in women. In September, Arizona sued L’Oreal and its US subsidiary, alleging that the company concealed evidence concerning potential cancer risks associated with the products.
L’Oreal USA has previously said it is confident in the safety of its products and maintains that the claims against them lack legal or scientific merit.
