Avon Trust Sues Liability Insurers Over Talc Lawsuit Coverage

A trust formed to handle talc claims against Avon as part of its bankruptcy plan is suing the company’s insurance carriers—which include units of American International Group Inc. and Travelers Cos.—seeking coverage for the claims.

The insurers owe coverage for Avon’s potential settlement or judgment costs in litigation over talc products, and some carriers are also obligated to cover its legal defense costs, the Avon Liquidation Trust said in a complaint filed Tuesday in Delaware Superior Court.

Avon Products Inc. filed for Chapter 11 bankruptcy in August 2024 after it was hit with an onslaught of lawsuits alleging talc ...