Department of Justice Looking Closer at Asbestos Trusts

The U.S. Department of Justice has increased its scrutiny of asbestos trust funds in recent months, urging more accountability and transparency. Those who administer the funds believe they work just fine. The trust funds are designed mostly to compensate workers who were sickened by negligent companies that sold or manufactured asbestos products. Currently there are more than 60 trust funds with an estimated $30 billion combined, stemming from companies seeking bankruptcy protection and avoiding future liabilities related to asbestos exposure. Since the first trust was established in 1988, they have paid out more than $20 billion to millions of claimants, according to the RAND Corporation’s Institute for Civil Justice. The trust fund money is in addition to an even larger amount being paid by asbestos companies which have remained solvent. The DOJ believes the trust funds lack adequate safeguards to prevent fraudulent claims and mismanagement, which could prematurely deplete the funds designed for future claims. The department points to a lack of oversight and a potential for unscrupulous manipulation. Funds Designed to Avoid Costly Lawsuits Lawyers for asbestos victims have countered that the process enables those affected to obtain the necessary compensation without enduring difficult lawsuits. They also say there is no evidence of any widespread fraud. The majority of cases stem from occupational exposure to asbestos, which can lead to a number of serious diseases such...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Source Type: news