Avon $43M DIP Acceptance Amid Chapter 11 Bankruptcy

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These legal challenges were highlighted by a $24 million jury award in July to the family of a former janitor who worked at an Avon facility in Illinois in the 1980s. The jury found Avon negligently exposed the worker to asbestos-contaminated talc, leading to his development of mesothelioma.

Avon ceased selling products in the U.S. after selling its North American business in 2016 and was acquired by Natura in 2020. Despite this, Avon Products Inc. (API) continues to face lawsuits over products sold before 2016, with around 386 talc-related cases pending at the time of its bankruptcy filing.

Avon $43M DIP Acceptance : Talc Claimants and Legal Representation

During Wednesday’s hearing, Todd E. Phillips of Caplin & Drysdale, representing talc claimants, argued for the appointment of an official committee to represent the interests of those affected by Avon’s alleged asbestos-tainted products. Phillips criticized Avon for what he termed a “grotesque minimization of harm” caused by the talc products.

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