JOHNSON & JOHNSON SUPPLIER SEEKS BANKRUPTCY OVER TALC LAWSUITS

A key supplier of talc used in Johnson & Johnson’s baby powder filed for Chapter 11 bankruptcy on Wednesday in the wake of multibillion-dollar lawsuits alleging its products caused ovarian cancer and asbestos-related mesothelioma. Imerys Talc America, the U.S. unit of French group Imerys SA, said it filed for bankruptcy because it lacks the financial clout to defend against nearly 15,000 lawsuits over its talc mineral product.

Imerys said that while it continued to believe the lawsuits are without merit, the prospect of rising settlement and defense costs over the next few years prompted the decision to file for bankruptcy.

They also cite a multibilliondollar verdict against Johnson & Johnson and the ensuing media attention as factors that led to the Chapter 11 filing.

In July, a Missouri jury ordered J&J to pay a record $4.69 billion to 22 women who said asbestos in talc caused ovarian cancer. The healthcare conglomerate has said it is appealing that verdict. Imerys settled for an undisclosed amount prior to the trial.

Imerys and J&J have repeatedly denied the allegations, saying numerous studies and tests by regulators worldwide have shown their talc to be safe.

J&J on Wednesday declined to comment on Imerys Talc America’s Chapter 11 filing. Reuters on Dec. 14 published a report detailing that J&J knew that the talc in its raw and finished powders sometimes tested positive for small amounts of asbestos from the 1970s into the early 2000s - test results it did not disclose to regulators or consumers. Bankruptcy provides Imerys a single forum to settle the widespread litigation.