L'Oreal explores unloading chemical-related liabilities

L Oreal SA has enlisted the help of restructuring advisers to examine potential solutions for the growing legal liabilities in the United States related to its use of talc and other chemical ingredients in certain cosmetic products, according to a report by the Wall Street Journal on Monday. The cosmetics company's US division is collaborating with restructuring attorney Weil Gotshal & Manges and investment bank Ducera Partners to tackle lawsuits from individuals who claim that talc-containing products caused health issues.

According to the Journal, citing informed sources, L Oreal reported 760 US legal proceedings concerning the presence of asbestos particles in some talc-containing cosmetic products as of June 30, compared to around 620 cases at the end of 2025. The company firmly denies these allegations. L Oreal is contemplating isolating tort liabilities into a separate corporate entity and potentially selling them to an outside investor, a move reminiscent of Honeywell's 2023 divestment of certain asbestos liabilities to Delticus.

The Journal suggests this strategy could enable L Oreal to separate its exposure from its core operations. The company's advisers are also considering alternative methods to resolve these claims outside Chapter 11 bankruptcy proceedings, akin to Honeywell's divestiture. At present, L Oreal, Weil Gotshal & Manges, and Ducera have not commented on the matter.

Furthermore, L Oreal faces thousands of lawsuits alleging that its hair relaxer products could cause cancer in women. In September, Arizona filed a lawsuit against L Oreal and its US subsidiary, claiming the company concealed evidence that its products could cause cancer. L Oreal USA Inc maintains it is confident in the safety of its products and deems the claims to be without legal or scientific validity.