L’Oreal explores sale of talc-related legal liabilities

L’Oreal is taking steps to address growing legal challenges related to its use of talc and other chemicals in some cosmetic products. The company’s US unit has enlisted the restructuring firm Weil Gotshal & Manges and investment bank Ducera Partners to explore options for managing these liabilities. According to the Wall Street Journal, L’Oreal is considering separating its legal exposure into a distinct corporate entity and potentially selling it to an outside investor.

The move comes as L’Oreal faces thousands of lawsuits alleging that its talc-containing products contain asbestos particles, which could cause illness. The company reported in its latest half-year report that around 760 US proceedings were pending as of June 30, 2026, up from 620 at the end of 2025. L’Oreal maintains that it strongly contests these claims.

This strategy mirrors a tactic used by Honeywell last year, which divested certain asbestos liabilities to the corporate liability acquisition platform Delticus. The approach would allow L’Oreal to address the claims without filing for Chapter 11 bankruptcy. The company has also faced legal action over its hair relaxer products, with Arizona suing in September, alleging that L’Oreal hid evidence suggesting the products could cause cancer.

L’Oreal US has previously stated that it stands by the safety of its products and denies the legal and scientific merit of these claims. The broader talc litigation has already cost Johnson & Johnson billions of dollars, prompting several companies to seek resolutions in bankruptcy court. In July, J&J agreed to pay $5.5 billion to settle tens of thousands of lawsuits alleging its talc products cause ovarian cancer.