L’Oreal explores options for chemical-related liabilities

L'Oréal is grappling with thousands of lawsuits alleging its hair relaxer products may cause cancer in women. The cosmetics giant has enlisted restructuring advisers to examine its options for the mounting legal risks associated with the use of talc and other chemical ingredients in certain cosmetic products, according to a Wall Street Journal report.

The company's US unit is collaborating with restructuring counsel Weil Gotshal & Manges and investment bank Ducera Partners to tackle lawsuits claiming the talc products caused harm, the Journal noted, citing sources familiar with the situation. As of June 30, there were approximately 760 pending US proceedings over the alleged presence of asbestos particles in talc-containing cosmetic products, up from around 620 at the end of 2025, L'Oréal stated in its latest half-year report.

The company maintains it contests these claims and is confident in the safety of its products. In an effort to offload tort liabilities, L'Oréal's advisers are exploring a sale to an external investor, similar to Honeywell's divestiture of asbestos liabilities last year. This move would allow the company to separate its exposure from its core operations.

L'Oréal, alongside its advisers and Weil Gotshal & Manges, has yet to comment on the matter. The issue of talc litigation has proven costly for Johnson & Johnson, who recently paid an estimated $5.5 billion to settle tens of thousands of lawsuits alleging its baby powder and other talc products caused ovarian cancer. Other companies, such as Avon Products, have also turned to bankruptcy court to address their talc liabilities.

Additionally, Arizona recently sued L'Oréal and its US subsidiary, alleging the company concealed evidence linking the products to cancer risks. L'Oréal US has previously expressed confidence in the safety of its products and dismissed those claims as lacking legal and scientific merit.