Home / News / Legislation & Litigation

J&J Talc Supplier Imerys Files for Bankruptcy Over Cancer Lawsuits

Legislation & Litigation

Written by Tim Povtak

Fact Checked

Cite This Article

Reading Time: 4 mins

Publication Date: 02/14/2019

Asbestos.com is the nation’s most trusted mesothelioma resource

The Mesothelioma Center at Asbestos.com has provided patients and their loved ones the most updated and reliable information on mesothelioma and asbestos exposure since 2006.

Our team of Patient Advocates includes a medical doctor, a registered nurse, health services administrators, veterans, VA-accredited Claims Agents, an oncology patient navigator and hospice care expert. Their combined expertise means we help any mesothelioma patient or loved one through every step of their cancer journey.

More than 30 contributors, including mesothelioma doctors, survivors, health care professionals and other experts, have peer-reviewed our website and written unique research-driven articles to ensure you get the highest-quality medical and health information.

About The Mesothelioma Center at Asbestos.com

Assisting mesothelioma patients and their loved ones since 2006.
Helps more than 50% of mesothelioma patients diagnosed annually in the U.S.
A+ rating from the Better Business Bureau.
5-star reviewed mesothelioma and support organization.

Learn More About Us

Testimonials

My family has only the highest compliment for the assistance and support that we received from The Mesothelioma Center. This is a staff of compassionate and knowledgeable individuals who respect what your family is experiencing and who go the extra mile to make an unfortunate diagnosis less stressful. Information and assistance were provided by The Mesothelioma Center at no cost to our family.

Lashawn

Mesothelioma patient’s daughter

Read Our Testimonials

Seeking protection from rapidly mounting litigation, Imerys Talc America and two of its subsidiaries filed for Chapter 11 bankruptcy protection Wednesday in Delaware.

Imerys is a major talc supplier for Johnson & Johnson consumer goods, including the company’s iconic baby powder and Shower to Shower line.

Litigants claim the talc-based products were contaminated with asbestos, leading to cases of mesothelioma and ovarian cancer.

The bankruptcy filing comes in the midst of an ongoing, high-profile trial in California in which a woman is blaming Imerys talc for her mesothelioma, a rare cancer caused almost exclusively from asbestos exposure.

“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,” Imerys Talc America President Giorgio La Motta said in a statement.

Subsidiaries Imerys Talc Vermont and Imerys Talc Canada Inc. also filed for bankruptcy protection Wednesday.

Imerys Facing 14,000 Claims

According to court filings Wednesday, Imerys is facing more than 14,000 claims in courts across the U.S. regarding asbestos-contaminated talc.

Johnson & Johnson, a much-larger company, is facing even more claims but has the financial resources to withstand the onslaught. The majority of claims include both companies.

Most of the filings involve women who allege the talc caused their ovarian cancer. Only a small percentage involve mesothelioma, which only recently has been linked to contaminated talc.

Both companies have been saddled by claims for almost a decade, but the numbers have been rising steadily.

Lawsuits are expected to jump significantly in 2019, stemming from a December 2018 report from Reuters that detailed the most damaging collection of data to date.

The extensive report detailed internal documents that showed Johnson & Johnson knew for decades that its talc products could be contaminated with asbestos.

Business Will Continue

La Motta said Imerys and its subsidiaries would continue operating as usual through the bankruptcy process.

As part of the proceedings, Imerys is expected to set up a trust fund to handle current and future talc cases.

The trust would put all cases under a single judge. The judge will decide the monetary value of a trust to resolve pending and future cases, while still allowing Imerys to operate profitably.

“It is simply not in the best interest of our stakeholders to litigate these claims in perpetuity and incur millions of dollars in projected legal costs to defend these cases,” La Motta said.

Many Asbestos Trust Funds Exist

Imerys is just the latest company to file for bankruptcy protection against asbestos claims in the past three decades.

There are more than 60 trust funds today — holding close to $30 billion combined — stemming from companies seeking bankruptcy protection from future asbestos liabilities.

More than $20 billion has been paid to millions of claimants since the first trust was established in 1988, according to the RAND Corporation’s Institute for Civil Justice.

The U.S. Department of Justice has increased scrutiny of asbestos trusts recently, asking for more transparency and accountability.

Most talc-related cancer cases are settled before a trial begins. However, Johnson & Johnson and Imerys lost their first case together in April 2018.

It cost Johnson & Johnson $80 million in punitive and compensatory damages. Imerys was charged with $36 million.

In July 2018, Imerys paid more than $5 million to resolve claims by 22 women in one case before the trial began.

Johnson & Johnson, which opted to go to trial in the same case, was hit with a $4.69 billion verdict.

Imerys and Johnson & Johnson have been steadfast in their claims that their products are safe and do not contain anything that causes cancer.

The asbestos-talc mix stems from the mining of the products. Both naturally occurring minerals are often found in close proximity to each other near the earth’s surface.

Both sides have produced testing and experts that back their claims.