Thousands of consumers who claim they developed mesothelioma and other cancers from using baby powder and other products containing talc the US division of a French company produced could benefit from a proposed $862.5 million trust.
Imerys Talc America, Inc., and its former owner, Cyprus Mines Corps, have agreed to establish a joint trust to settle more than 15,000 lawsuits, according to court documents filed on Jan. 31. A judge will decide whether to accept the proposal following a March 14 hearing.
According to the proposed agreement, Cyprus, Imerys, two insurers, and Rio Tinto America Inc., another former Imerys owner, would receive liability releases for talc claims through their contributions to the settlement trust.
The trust would consist of two sub-funds, with 60% of the money set aside for mesothelioma and other lung cancer claims. The rest would go towards claimants with ovarian cancer. Researchers have connected these diseases with the asbestos found in talc.
Both current and future claimants would be eligible to apply for compensation funds. Criteria such as disease severity would determine the amount of money the trust awards each plaintiff.
How Did the Settlement Trust Come About?
Due to mounting lawsuits from cancer victims who used baby powder, soap, and makeup containing Imerys talc, the company filed for Chapter 11 protection in a Delaware bankruptcy court in 2019. Cyprus followed suit in 2022 after plaintiffs named it in more than 400 similar claims.
After rejecting a previous Chapter 11 plan, the bankruptcy court granted Imerys, Cyprus, and some of its insurers permission to enter mediation to negotiate a new one.
A committee of cancer claimants and a rep for future talc injury plaintiffs support the new plan. Imerys and Cyprus intend to repay the rest of their creditors under Chapter 11.
Imerys Has a Long History with Johnson & Johnson
Imerys was Johnson & Johnson’s only talc supplier for many years. J&J’s talc unit filed for Chapter 11 protection after a jury returned a multimillion-dollar verdict against the main company in 2018 based on cancer claims from consumers who used its baby powder. Since then, J&J has been facing similar lawsuits.
In its Jan. 31 disclosure statement, Imerys stated it is engaged in indemnity disputes with J&J, and those rights “may arguably constitute the most valuable assets of the talc personal injury trust.”
