The company’s U.S. unit is consulting restructuring advisers as it faces lawsuits involving talc and other ingredients, according to The Wall Street Journal.
L’Oréal has hired restructuring advisers to explore options for addressing rising U.S. legal liabilities tied to talc and other chemical ingredients in some cosmetics, The Wall Street Journal reported on October 5, citing people familiar with the matter.
The newspaper said the company’s U.S. unit is working with restructuring law firm Weil Gotshal & Manges and investment bank Ducera Partners. Plaintiffs allege that talc-based products caused illness. L’Oréal, Weil and Ducera did not immediately respond to requests for comment.
The group also faces thousands of lawsuits alleging that hair-straightening products may cause cancer in women. In September, Arizona sued L’Oréal and its U.S. subsidiary, alleging that the company concealed evidence of a possible risk. L’Oréal USA has previously said it stands by product safety and considers the claims to lack legal and scientific merit. The allegations have not been established by a court.