J&J's talc supplier files for bankruptcy as cancer lawsuit risks rise

Imerys Talc America, which supplies talc for Johnson & Johnson's baby powder, filed for Chapter 11 bankruptcy Feb. 13, according to Bloomberg.

The decision to file is a result of the 14,000 claims the company faces in U.S. courts that allege Imerys' talc causes ovarian cancer or mesothelioma, according to the court filings.

Under Chapter 11 of the U.S Bankruptcy Code, Imerys Talc can set up a trust to deal with the current talc cases and any future claims brought against the company. It will also bring the lawsuits under a single judge and allow Imerys to pressure plaintiffs for lower settlements.

"After carefully evaluating all possible options, we determined pursuing Chapter 11 protection is the best course of action to address our historic talc-related liabilities and position the companies for continued growth," Giorgio La Motta, president of Imerys Talc America, told Bloomberg.

The talc unit, a subsidiary of Imerys SA, filed for bankruptcy protection in a Delaware.

Read the full report here.

 

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