L’Oréal’s U.S. subsidiary has enlisted legal and financial advisers to explore options for offloading chemical-related liabilities.
The company is working with law firm Weil Gotshal and financial advisory firm Ducera, according to people familiar with the matter.
The move focuses on talc-related lawsuits that have raised concerns about potential long-term costs for the cosmetics giant.
Talc has been a persistent legal issue for personal care companies. Lawsuits often claim that talc products contained asbestos or caused health problems.
L’Oréal has consistently denied wrongdoing, but the volume of claims has created financial and reputational pressure.
Advisers are reportedly examining ways to isolate or restructure those liabilities. That could include bankruptcy proceedings for the U.S. subsidiary.
Such a step would not necessarily shut down the subsidiary. It would aim to separate legacy legal claims from ongoing business operations.
The strategy mirrors actions taken by other companies facing mass tort litigation. Firms often use Chapter 11 to resolve claims while keeping core brands active.
No final decisions have been made, and the review remains at an early stage. L’Oréal declined to comment on the advisers’ work.
The outcome could affect how other consumer goods companies handle similar chemical liability cases in the future.
