A Texas bankruptcy judge recently confirmed cosmetics ingredient supplier Miyoshi America Inc.’s Chapter 11 plan to establish a $20 million trust addressing mesothelioma and asbestos-related personal injury claims. The approach represents the first-ever prepackaged talc reorganization in U.S. bankruptcy history, with 99% of current mesothelioma and talc claimants voting to accept the groundbreaking settlement.
Settlement Addresses Current and Future Mesothelioma and Ovarian Cancer Talc Claimants
Miyoshi America has faced a growing number of talc lawsuits from mesothelioma and ovarian cancer claims. The Connecticut-based supplier of cosmetic ingredients to manufacturers of consumer products denies that its products ever contained asbestos and has never been found liable for talc-related personal injury, but regardless of ultimate liability, it saw the litigation placing an excessive, unsustainable strain on its finances.
Rather than continuing to defend itself, the company engaged in six months of negotiation between itself, its parent company, a committee of law firms representing roughly 90% of claimants with mesothelioma and other asbestos injuries, and a future claimants representative protecting those not yet diagnosed. The final plan, which 99% of claimants voted to accept, creates a trust funded by a $19 million cash contribution from Miyoshi and a $1 million promissory note. All liability for current or future talc claims would be transferred to the trust.
Prepackaged Talc Reorganization Viewed as Fair Compensation for Mesothelioma Victims
Speaking of the extraordinary level of consensus from the company and those representing mesothelioma and ovarian cancer victims, Judge Lopez praised the process, calling it a landmark and saying “an incredible amount of people” had supported it and emphasizing that the plan offers finality and certainty for claimants while allowing the company to emerge as a going concern and preserve jobs.
The May 19th objection deadline passed without a single objection filed, demonstrating that the historic first-of-its-kind prepackaged mesothelioma talc reorganization achieved what courts and claimants have long sought: fair compensation for victims combined with a viable path forward for the responsible company.
If you or someone you love has been diagnosed with mesothelioma or another asbestos-related disease, the Patient Advocates at Mesothelioma.net can help. Contact us today at 1-800-692-8608 to learn more.
