USG Corp. Asbestos Settlement Reveals Shortcomings of Fund

USG Corp. Asbestos Settlement Reveals Shortcomings of Fund

Rewritten Article

USG Corp. Asbestos Settlement Reveals Shortcomings of Fund

Thursday, April 23rd, 2009

January 31 , 2006

Chicago based aggregation USG Corp. has appear to an acceding apropos settlements for their asbestos accompanying lawsuits. The better architect of wallboard in the apple filed for defalcation in 2001, which has accepted to be a abundant business move for the company, decidedly accretion sales, banal prices, and profits for USG.

USG has proposed a $900 actor asbestos defalcation armamentarium in banknote to atone those with asbestos abrasion claims adjoin the aggregation as able-bodied as a accidental agenda for an added for an added $3.05 billion. The $3.05 billion accidental agenda is barring the conception of the federal asbestos fund. If Congress passes legislation to actualize the federal abrasion fund, the accidental agenda will be void.

The USG bill in accomplice with the McDermott International Inc.’s plan, appear beforehand this January, has apparent the accumulated motives for the federal asbestos fund. The fund, which proposes a $140 billion advantage armamentarium to allay abrasion and adversity of asbestos victims, will abatement acutely abbreviate in allotment of the bulk that would be awarded if the claims were dealt with by the companies, independently.

For instance, the $3.05 billion accidental agenda that will be allowable by USG will be canceled in the accident of the federal fund, abbreviation the company’s accountability payments to 23 cents on the dollar of what the amercement would accept been. McDermott International Inc. analogously has proposed an antecedent $350 actor asbestos defalcation assurance armamentarium with a accidental $600 actor if the federal armamentarium does not pass. If the federal asbestos armamentarium is created however, McDermott will alone pay an added $25 actor to atone asbestos victims.

“The USG plan makes apparent that the federal assurance armamentarium is a accumulated bailout in sheep’s clothing,” commented Joan Claybrook of Public Citizen. “Under the guise of compensating victims for abhorrent diseases, like asbestosis and mesothelioma, accumulated America’s absolute aim is to run abroad from billions in accountability for advisedly advertisement workers to a baleful toxin.”

Federal armamentarium supporters altercate that the defalcation of abounding companies adverse ample asbestos abrasion claims displays the accessible charge for the federal fund. While the companies advance financially and in the banal bazaar from their own bankruptcy, the abridgement is accident billions of dollars and bags of jobs, altercate the sponsors.

These allegations apropos the company’s banking cachet are not far from the truth. USG’s sales accept developed an estimated 56 percent back 2001 if they filed for defalcation and their banal prices accept risen over 2,400 percent, adopting the companies banal amount by about $800 million.

For added advice about companies complex in both asbestos funds and trusts, appointment our Asbestos defalcation companies section.

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USG Corp. Asbestos Settlement Reveals Shortcomings of Fund