Late last week, the Bankruptcy Court for the District of Delaware approved the terms of a settlement to resolve outstanding personal injury claims against Avon Products by those whose mesothelioma and other diseases were caused by exposure to the company’s talc-based products. Though a few miscellaneous items remain to be ironed out, Judge Craig T. Goldblatt said that the outstanding items were inconsequential and that the plan could move forward.
Avon’s Mesothelioma Settlement is Limited to Five Years or Less
Unlike many of the bankruptcy trusts established by companies that reorganized in the face of their mesothelioma and asbestos disease liabilities, the Avon Products agreement trust is only a mechanism for resolving claims presented during the life of the trust, and not for future arising claims. The trust will be dissolved at the earlier of five years after its creation or when all its assets have been depleted by submitted claims.
The trust creates eight different creditor classes, including a talc claimant class that includes a subcategory specifically for those diagnosed with mesothelioma and whose claims were unliquidated by the time of the bankruptcy petition. Those previously resolved claims will be paid quickly from the trust, and all others will be paid on a first-in, first-out basis. Claims are restricted to exposure that occurred in the United States or the United Kingdom.
Mesothelioma Victims Have Two Choices
Mesothelioma claimants can choose an expedited review that will pay them $10,000 after proving regular exposure to Avon’s cosmetic talc products for at least three years, or they can elect a more rigorous individual review process that request proving the same exposure and medical diagnosis criteria as the expedited review process, as well as whether they used other talc products or were exposed to any other asbestos or asbestos-containing products. The liquidation trustee will consider all factors to determine the value of the victim’s claim, with that amount capped at $3 million.
Individuals diagnosed with non-mesothelioma talc claims automatically proceed through the individual review process, and if their claim is deemed eligible, they may receive up to $6,000. Those who do not accept the value offered to them through this process can arbitrate the assigned determination, but will not be able to pursue the issue in court.
If you or someone you love has been diagnosed with mesothelioma or another asbestos-related disease after using or being exposed to an Avon talc-containing product, the Patient Advocates at Mesothelioma.net can help. Contact us today at 1-800-692-8608 to learn more about your options.
