In August 2024, Avon Products Inc. (Avon) filed for Chapter 11 bankruptcy after facing hundreds of lawsuits. Among these lawsuits are a significant number of asbestos exposure cases. This filing may signal substantial changes to some company operations.
Asbestos in talc has been a major beauty industry issue for years. Consumer protection groups have found several companies sold talc-based cosmetics contaminated with asbestos. For example, Chanel and Claire’s have sold many contaminated talc products.
Two of the bigger names facing asbestos troubles are Avon and Johnson & Johnson. Now, both have declared bankruptcy over outstanding asbestos liabilities.
What Happens After Avon’s Bankruptcy Filing?
Avon’s Chapter 11 bankruptcy will allow the company to stay in business while it reorganizes. An outside consulting firm and a financial advisor are working with Avon to develop the bankruptcy plan.
In 2020, Natura & Co. acquired Avon’s international operations. Natura & Co., a Brazilian beauty brand, is a holding company for Avon and its subsidiaries.
With the bankruptcy, Natura & Co. has offered $43 million to help Avon through the bankruptcy process. It has also offered $125 million in credit for Avon’s equity.
This plan would address Avon’s liabilities while allowing the international business to continue.
Avon’s Recent Trouble With Talc Lawsuits
Avon has faced many lawsuits from people injured by their asbestos-contaminated talc. These troubles have not yet reached the level of Johnson & Johnson’s legal woes. But there have been some sizable verdicts.
At the time of the bankruptcy filing, Avon faced as many as 386 pending injury lawsuits. Reports suggested the company has more than $1 billion in liabilities.
Avon Hit With $50-Million Verdict
A California jury handed Avon a $50-million verdict in December 2022 over asbestos exposure. In this case, a 76-year-old woman claimed Avon’s talc-based products were contaminated with asbestos. After decades of use, the woman developed mesothelioma.
Evidence suggested Avon knew of the mineral’s dangers and contamination risks. The jury found company executives acted maliciously by hiding this information from the public. At the end of the trial, Avon had to pay $40 million for actual damages and an additional $10.3 million in punitive damages.
Chicago Jury Verdict Awards More Than $24 Million
In July 2024, a jury in Chicago ordered Avon to pay a former employee $24.4 million. The man worked as a janitor in the Avon manufacturing facility in the 1980s. At this facility, he was exposed to asbestos-contaminated talc. Doctors diagnosed him with pleural mesothelioma in 2023.
Financial Help Is Available
Asbestos-contaminated talc has been a serious issue for years. But it has gotten more attention recently as large companies, like Avon, are facing legal consequences. Anyone who has gotten sick from any of these products may have legal options.
Experienced lawyers at mesothelioma law firms understand asbestos laws. Victims of contaminated talc can work with these lawyers to get compensation for their injuries.
