Zonolite insulation maker W.R. Grace & Co. recently agreed to a huge payment plan to settle the class action launched against it by thousands of people who have been harmed by asbestos. Grace, widely known as the operator of the asbestos mines in Libby, Montana, began the bankruptcy process in 2001, but the company will pay up to $140 million as a settlement, backed by 50.1 percent of the company’s stock.

The settlement agreement must first be approved by a federal bankruptcy court.

Total Payment As Much as $140 Million

Grace had reached an agreement with the plaintiffs’ attorneys in August 2008 to resolve all of the claims against the company; it took this long to work out the dollar amount. According to its statement filed with Securities and Exchange Commission, Grace will pay:

• $30 million immediately into a trust fund for asbestos victims
• $30 million to the fund in three years
• Starting in 2014, Grace will pay up to ten more annual $8 million payments over a 20-year period if certain conditions are met (depending on how much the trust pays out in claims).

Apparently, the most that any single claimant can receive under the settlement is $7,500, which is a pittance compared to the medical bills and other losses suffered by a person or family affected by an asbestos disease.

Asbestos Toxic Insulation

This outcome is the upshot of Grace’s sale of Zonolite vermiculite insulation, a loose-fill product that was installed in tens of millions of homes throughout the U.S. and Canada. Vermiculite contains asbestos, the toxic mineral that can cause mesothelioma cancer, asbestosis, and several types of cancer. The class action lawsuit against Grace was a combination of hundreds of thousands of individual asbestos lawsuits. A group of senior executives at Grace are facing criminal charges.

(Source: Los Angeles Times)

If you have been impacted by asbestos cancer, contact mesothelioma centers to speak with asbestos attorneys to discuss your concerns.