Texas Judge Investigates Asbestos in Talc Amid Bankruptcy Battle

News Summary

A Texas bankruptcy judge is investigating asbestos levels in talc sold by Barretts Minerals Inc. amid a complex legal battle involving health risks and bankruptcy claims. Judge Marvin Isgur is reviewing allegations that the talc may contain asbestos harmful to health, including links to mesothelioma. As Barretts Minerals navigates bankruptcy, it faces critiques regarding the legitimacy of its filing, with claims that this shield is protecting parent companies from accountability. The situation remains unresolved as legal claims and transparency issues continue to unfold in court.

Texas Judge Probes Asbestos Levels from Former Talc Mine Amid Bankruptcy Fight

A Texas bankruptcy judge is diving into an environmental and health quagmire concerning talc sold by Barretts Minerals Inc. from a notorious mine located in Dillon, Montana. The inquiry, initiated by U.S. Bankruptcy Court Judge Marvin Isgur, is centered around whether the talc in question harbored sufficient asbestos to induce debilitating diseases like mesothelioma.

Implementing a formal request in a court order filed in mid-May 2024, Judge Isgur is facing a complex web of allegations and lawsuits that center around Barretts Minerals, which filed for bankruptcy in 2023 under the weight of hundreds of legal claims asserting that its asbestos-laden talc caused severe health issues.

Judge Isgur Denies Dismissal Petition

Despite efforts from a committee of claimants aiming to dismiss Barretts Minerals’ bankruptcy case, Judge Isgur thwarted their attempts in late April, permitting the company to navigate the murky waters of Chapter 11 bankruptcy. This decision aroused contention over whether Barretts Minerals is misusing bankruptcy protections to shield itself and its solvent parent companies from impending lawsuits.

Barretts Minerals has faced mounting pressure after allegations emerged regarding its talc products. The company underwent a substantial rebranding following the sale of its talc business to Elevation NewCo, LLC, for $32 million on April 29, 2024. Now operating as High Divide Minerals, the company has refrained from commenting on Barretts’ previous activities due to legal agreements associated with the sale.

Claimants Allege Bankruptcy Is A Shield

Critiques have poured in from various claimant attorneys, who allege that Barretts Minerals OldCo’s bankruptcy filing was a structure designed in bad faith to protect its parent firms, Specialty Minerals Inc. and Minerals Technologies Inc., from litigation. As a result, most lawsuits are being filed in Texas, steering clear of states like Montana, Pennsylvania, or New York, where Barretts has more historical ties.

Despite its current status as a defunct entity, Barretts Minerals OldCo has proposed a Chapter 11 plan to manage asbestos-related claims. Under judicial supervision, a temporary stop has been instituted on a majority of talc-related litigation against Minerals Technologies, allowing only targeted “testing claims” to proceed, which contest the purity test results of the company’s talc.

New Strategies for Reimbursement and Claims

As the courtroom drama unfolds, the lacking transparency about whether Barretts’ talc contains asbestos looms large over ongoing litigation. A spokesperson for Barretts Minerals OldCo has reiterated the company’s goal of attaining a fair resolution regarding talc-related liabilities while asserting that their talc products are devoid of harmful asbestos.

The nature of the claims is further complicated by the fact that the ongoing lawsuits have characterized Barretts Minerals as a mere facade, a front designed to isolate parent companies from accountability. With ongoing appeals in various jurisdictions — particularly New Jersey, New York, and California — claimants assert that the judicial process is unreasonably delaying compensation for those affected.

The Stakes Are High

The latest turn of events arrived on April 17, 2025, when Minerals Technologies announced a financial reserve amounting to $215 million to address current and anticipated talc-related claims, alongside funding Barretts Minerals OldCo’s Chapter 11 proceedings. This reserve highlights the critical intersection of corporate decision-making and public health implications, as the far-reaching consequences of these decisions will significantly affect the future of numerous pending lawsuits.

As the court endeavors to assess asbestos levels in the talc, the outcomes hold considerable weight for both claimants and implicated companies. With the talc saga still far from resolution, all eyes are on the Texas courts to deliver a verdict that can either clear the path for those seeking justice or entrench the corporate structures designed to protect the financially fortified entities.