A federal court recently approved an asbestos talc bankruptcy plan that will provide mesothelioma victims, ovarian cancer victims, and their families with access to compensation from a $50 million trust fund. The proposed plan had been submitted by cosmetics supplier Presperse and its parent company, Sumitomo Corporation. The plan addresses hundreds of lawsuits filed by individuals who blame their serious illnesses on exposure to the company’s talc-based products.
Mesothelioma Litigation Costs Drove Company’s Decision to Restructure
The public has recently become aware of the mesothelioma risk caused by exposure to cosmetic talc, and many victims have included Presperse in their personal injury lawsuits. Litigation against the company over the last few years has surged to more than 275 lawsuits. With the company being the main ingredient supplier for over 300 corporate customers and more than 400 products, the cost of defending itself became untenable.
Though the company continues to argue that all of the mesothelioma and asbestos lawsuits filed against it are “entirely without merit,” it stopped all sales of talc products in the summer of 2023, and in 2024 applied for Chapter 11 bankruptcy protection.
Company’s Chapter 11 Filing Offers New Options for Mesothelioma Victims
Like many other companies facing significant mesothelioma liabilities, Presperse found that the costs of defending itself and the payouts it was required to make had led to a $40.6 million loss in 2024 alone. Liabilities for asbestos-related diseases continue to grow among cosmetic talc companies: a recent study indicated that nearly 800 out of 3almost 4,000 asbestos lawsuits filed in 2024 blamed their illnesses on exposure to talc. This represents an 18% increase from 2023, and a disturbingly high percentage (90%) of those cases were filed by mesothelioma victims or their families.
With Presperse’s assets shrinking in the face of talc-related mesothelioma claims, its parent company, Sumitomo Corporation, took action. The newly approved trust fund represents a significant step toward providing compensation for mesothelioma victims and others affected by the product, offering the opportunity to file documentation within a claim against the trust and receive prompt compensation without the need for time-consuming, stressful litigation.
If you or someone you love has been diagnosed with mesothelioma or another asbestos-related disease and you believe it was caused by exposure to talc, the Patient Advocates at Mesothelioma.net can help. Contact us today at 1-800-692-8608 to learn more.
