Libby Clinic Files for Bankruptcy After Asbestos Claims Ruling

The Center for Asbestos Related Disease in Libby, Montana, has filed for Chapter 11 bankruptcy protection. The decision comes after a jury ruled in June that CARD had submitted 337 false asbestos claims, forcing the clinic to pay nearly $6 million in penalties and damages.  BNSF Railway filed the lawsuit against CARD under the federal False Claims Act. The act allows private parties to file a lawsuit on the federal government’s behalf. The suit accuses the clinic of failing to get outside confirmation that hundreds of patients had an asbestos-related illness. The railroad company, owned by billionaire Warren Buffett, is a defendant in lawsuits over its role in asbestos contamination that impacted thousands of people. In 2020, the Montana Supreme Court found BNSF liable for shipping asbestos-contaminated vermiculite through Libby.  Libby is a former vermiculite mining town. Because vermiculite forms in such close proximity to asbestos underground, the vermiculite deposits became contaminated with the toxic mineral. Libby was placed on the U.S. Environmental Protection Agency’s Superfund list more than 20 years ago. Cleanup of the site is nearly complete, but because of the long latency period for asbestos-related diseases such as mesothelioma, locals are now dealing with long-term health issues.  False Claims Act Lawsuit Fallout The nonprofit CARD clinic opened in 2000. It provides screenings and other health resources to residents affected by the asb...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Tags: Asbestos Exposure Legal Treatment Source Type: news