Owens Corning Settlement Approved for Asbestos Victims

September 25, 2006 - A $5.2 billion settlement approved this week for insulation manufacturer Owens Corning marks the end of a five year stalemate for victims of asbestos exposure caused by the company’s products.

Thousands of victims rejoiced as their attorneys brought them the news.  "It's a good start," Chris Anderson, 58, told the Seattle Times.  Anderson, a third-generation insulator at the Puget Sound Naval Shipyard in Bremerton, was diagnosed with asbestosis two years ago.  Previous to that, he watched his grandfather, father, and mother all die from the disease.

Owens Corning, based in Toledo, Ohio, used asbestos in their products for more than 30 years.  Attorneys were able to prove that the company and its executives knew about the dangers of working with the material but did nothing to either warn or protect their employees.

"We were able to show they literally had, in their hands, studies showing they knew the risk to human health at the same time they were marketing it as non-toxic," said Seattle lawyer Matthew Bergman, who was part of the Trust Advisory Committee that helped establish the parameters of the settlement..

According to the Seattle Times, Bergman said the settlement amount was based on calculations for current and future asbestos lawsuits. Nationwide there are, or will be, about 200,000 claims against Owens Corning. 

According to figures released by the court, the settlement agreement requires that Owens Corning pay $4.29 billion in cash into an asbestos victims' trust fund, plus allot to the fund 28.6 million company stock shares once the company emerges from bankruptcy later this year.

We never imagined all those years ago that something meant to protect people would end up killing them," said mesothelioma victim, Burt Shephard, who estimates he will receive about $147,000 from the settlement.
"The scary part for me is that I remember coming home with it all over my clothes. I'm just thankful for the help this will provide my family."