L’Oréal Engages Top Advisers Amid Rising U.S. Talc Lawsuits
Beauty industry leader, L’Oréal, is taking decisive action in response to an escalating legal situation in the United States. A recent expose by The Wall Street Journal reveals that the world’s premier cosmetics company has enlisted the expertise of leading restructuring advisers. This includes the law firm Weil, Gotshal & Manges and investment bank Ducera Partners. Their task? To explore potential solutions for the increasing litigation surrounding its use of talc and other chemical ingredients in certain cosmetic products.
The magnitude of the issue is evident in L’Oréal’s own semi-annual financial report: as of June 30, 2026, there were approximately 760 U.S. legal proceedings pending. These proceedings involve allegations of asbestos particles in talc-containing products, a significant increase from about 620 at the end of 2025. L’Oréal vehemently disputes these claims. One potential solution under consideration involves transferring the tort liabilities into a separate corporate entity, which could then be sold to an external investor. This strategy mirrors Honeywell’s recent asbestos liability divestiture to platform Delticus.
Separately, L’Oréal is also contending with allegations that some of its hair-relaxing products have caused users to develop cancer. This adds another layer of legal complexity. The cosmetics industry is watching closely, as talc litigation has already cost rival Johnson & Johnson billions of dollars over a decade-long legal saga.
Source: Global Cosmetics News — October 6, 2026