Johnson & Johnson’s long time talc supplier is reportedly shopping the sale of its North American talc operations after filing for bankruptcy under the weight of thousands of asbestos cancer lawsuits in which the company was enjoined with the pharmaceutical and cosmetics giant. Those lawsuits, which thus far have produced billions in plaintiffs verdicts, claim that Johnson & Johnson and Imerys produced and marketed talc-based products like Baby Powder and Shower to Shower which contained deadly asbestos fibers and caused the victims’ debilitating and often fatal health conditions.
Among the assets up for supposed sale, Imerys is reported to consider selling strategic alternatives that could include the sale of business in North America as a whole. In February 2019, Imerys filed for Chapter 11 bankruptcy protection, citing that the company was facing more than 14,000 lawsuits in the United States at the time. Reports stress that deliberations are still at an early stage and that no final decisions have been reached as of yet.
The reports are significant in that the proceeds from the sale of Imerys’ North American talc operations could be used to fund settlements of talcum powder cancer lawsuits, through some form of a trust. To do so, Imerys would ultimately need to negotiate with creditors, which would include insurers and those parties involved in asbestos cancer lawsuits.