The long-time talc supplier for one of the country’s largest pharmaceutical and cosmetics giants recently agreed to settlement terms in its bankruptcy proceedings, which would effectively forfeit all of the supplier’s North American assets. The terms of the agreement call for France-based Imerys SA to auction off all of Imerys Talc America, Imerys Talc Vermont, and Imerys Talc Canada and have the assets placed into a trust that would compensate victims who claimed the company caused their debilitating asbestos cancer conditions.
Imerys Talc USA declared Chapter 11 bankruptcy back in February 2109 under the weight of an estimated 14,000 talcum powder asbestos cancer lawsuits in which the company was enjoined with Johnson & Johnson. Until that filing, Imerys Talc USA had for decades supplied talc to Johnson & Johnson, the New Brunswick, New Jersey-based cosmetics company that produces the iconic Baby Powder and other talc-based products.
Reports from January 2020 indicate that Imerys Talc USA had been shopping its operations for outright sale. With its Chapter 11 Bankruptcy filing, Imerys Talc USA was able to consolidate all of the pending lawsuits in state and federal courts in front of a single judge and remove itself from potentially millions, if not billions, of dollars in liability, which Johnson & Johnson still faces.