Imerys Talc America Inc. has filed for bankruptcy protection as it faces accusations that the talc it supplied for Johnson & Johnson’s baby powder causes cancer, the WSJ Pro Bankruptcy reported. The company filed for chapter 11 protection yesterday after spending tens of millions of dollars to defend itself against lawsuits alleging its talcum powder causes ovarian cancer and mesothelioma. The talc supplier faces claims from more than 14,600 people, a number that has grown dramatically in recent years in the wake of large verdicts against Imerys and baby powder maker Johnson & Johnson. The two companies contend talc doesn’t cause cancer or contain asbestos and Johnson & Johnson has succeeded in getting some verdicts overturned on appeal. The Imerys filing in U.S. Bankruptcy Court in Wilmington, Del., immediately suspends all talc-related litigation against the U.S.-based mining company and will enable Imerys officials to negotiate payouts with those who have sued them.
