THE WHAT? L’Oréal has appointed restructuring advisers to explore options for addressing mounting US legal liabilities related to talc and other chemical ingredients used in some of its cosmetics products, according to The Wall Street Journal.
THE DETAILS L’Oréal’s US subsidiary is working with restructuring law firm Weil, Gotshal & Manges and investment bank Ducera Partners to address mass lawsuits brought by individuals alleging illness linked to talc products, according to people familiar with the matter cited by The Wall Street Journal. The cosmetics group is also among several beauty companies facing separate allegations that hair-relaxing products caused users to develop cancer. The article does not specify which restructuring options L’Oréal is considering.
THE WHY? The appointment of specialist advisers signals that L’Oréal is assessing potential strategies for managing its exposure to large-scale product liability litigation in the US, as legal claims involving ingredients used in cosmetics continue to create risks for manufacturers.
Source: The Wall Street Journal
