September 14, 2018

DOJ raises flag in Kaiser Gypsum bankruptcy; Says it will investigate illegal conduct in trusts

Kaiser Gypsum sank into bankruptcy under the weight of 13,967 asbestos suits in October 2018. The company ceased to make anything or employ anyone years ago, persisting only as distributor of cash for asbestos settlements and verdicts.

Prior to bankruptcy, it resolved about 32,000 asbestos suits. The DOJ’s statement of interest says that courts and researchers, such as RAND Corp. in 2010, have noted a “growing number of concerns” with asbestos trusts, “particularly as they relate to fraudulent claims filed both within and outside the bankruptcy system.”

Read the source article at Legal Newsline

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