42 Talc Claimants Challenge Revlon's Bankruptcy Discharge in Second Circuit Appeal

Forty-two people diagnosed with mesothelioma and ovarian cancer are asking the Second Circuit Court of Appeals to reverse a ruling that bars their claims against Revlon. The case could determine whether companies with known asbestos liability can use generic bankruptcy proceedings to avoid compensating future victims.

Oral arguments were heard on February 18, 2026, before a three-judge panel. At the heart of the dispute is whether Section 524(g) of the Bankruptcy Code, the provision Congress created specifically for asbestos cases, is the only valid mechanism for discharging future asbestos claims, or whether a standard Chapter 11 discharge is sufficient.

What Revlon Did and Did Not Do

Revlon and 50 affiliated companies filed for Chapter 11 protection in June 2022, eliminating $2.7 billion in secured debt. The bankruptcy court confirmed the reorganization plan in April 2023, and the company emerged from bankruptcy the following month.

What the plan did not include: a trust fund for future asbestos and talc claimants, a legal representative for people who had been exposed but not yet diagnosed, or the 75% approval vote from existing asbestos claimants that Section 524(g) requires. The publication notice sent to potential creditors did not specifically mention asbestos or talc.

The product at issue is Jean Nate Silkening Body Powder, a talc-based cosmetic Revlon introduced in 1935 and has since discontinued. Talc and asbestos are minerals found in close geological proximity and are often mined together. Contamination occurs when asbestos fibers are not separated during processing.

The Lower Court Ruling

In August 2024, Bankruptcy Judge David S. Jones ruled that all 42 claims were time-barred because they were filed after the plan confirmation date. He found that Section 524(g) “is permissive and allows but does not require use of certain mechanisms for dealing with latent asbestos-related injuries.”

Under that reasoning, Revlon’s general Chapter 11 discharge was sufficient to bar future claims, even from people who had not yet been diagnosed. The judge subsequently certified the case for direct appeal to the Second Circuit.

What the Claimants Argue

The appellants, represented by David Frederick of Kellogg, Hansen, Todd, Figel & Frederick, raise three central issues:

Section 524(g) is exclusive, not optional. The claimants argue that when Congress enacted Section 524(g) in 1994, it created the only valid pathway for discharging future asbestos claims. A company cannot simply skip these requirements and rely on a general bankruptcy discharge.

Due process was violated. Without a trust fund or a future claims representative, the claimants argue they had no way to protect their interests during the bankruptcy. Because mesothelioma can take 20 to 50 years to develop after exposure, many people who will eventually become ill have no reason to monitor bankruptcy proceedings of companies whose products they used decades ago.

Notice was inadequate. The publication notice Revlon sent to potential creditors did not mention asbestos or talc and provided no guidance to people who might have been exposed through cosmetic products.

Why This Case Matters

If the Second Circuit sides with the claimants, it would establish that Section 524(g) is the exclusive mechanism for discharging future asbestos claims in bankruptcy. Companies with known asbestos liability would be required to establish perpetual trust mechanisms, appoint future claims representatives, and obtain supermajority approval from existing claimants before those claims could be discharged.

The American Association for Justice filed an amicus brief supporting the appellants, signaling concern across the plaintiff bar that allowing companies to bypass 524(g) could create a template for evading future liability in any latent-disease case, including PFAS and other emerging mass torts.

More than 56 asbestos trusts have been established under Section 524(g) since Congress enacted the provision in 1994, following the model created by the Johns Manville bankruptcy in 1982. Those trusts continue to accept and pay claims from people diagnosed with asbestos-related diseases decades after exposure.

The Jean Nate Product

Laura McDaniel filed a mesothelioma lawsuit against Revlon in February 2020, alleging exposure through Jean Nate Silkening Body Powder. Her complaint sought $20 million in compensatory and $40 million in punitive damages. The lawsuit was stayed when Revlon filed for bankruptcy two years later.

Revlon is not the only cosmetics company facing talc litigation. Johnson & Johnson has separately sought to resolve its own talc liabilities through bankruptcy, and multiple talc suppliers, including Vanderbilt Minerals, have filed for Chapter 11 protection citing asbestos-related claims.