L'Oreal seeks to unload rising US talc-related legal liabilities

L'Oreal has taken steps to address rising legal liabilities in the US related to its talc and chemical ingredients in some cosmetic products. The company has engaged restructuring advisers, including Weil Gotshal & Manges and investment bank Ducera Partners, to explore options for managing lawsuits alleging health issues from talc products. As of June 30, L'Oreal faced approximately 760 pending legal proceedings in the US, up from around 620 at the end of 2025. The company strongly disputes these claims, asserting the safety of its products.

The Wall Street Journal reported that L'Oreal is considering transferring its tort liabilities into a separate corporate entity, potentially selling them to an outside investor. This approach would allow the company to isolate its legal exposure from its core operations. The strategy mirrors Honeywell's 2023 sale of asbestos liabilities to Delticus, a corporate liability acquisition platform.

L'Oreal's move comes amid broader industry challenges with talc litigation. Johnson & Johnson has faced billions in legal costs and recently agreed to pay $5.5 billion to resolve lawsuits over its talc-based baby powder. Avon Products also entered Chapter 11 proceedings in 2024 to address its debt and talc-related liabilities. Additionally, L'Oreal is defending against lawsuits alleging its hair relaxer products may cause cancer, with Arizona suing the company in September for allegedly concealing evidence.