Libby Community Skeptical about Grace Settlement
The April 7 settlement between W.R. Grace & Co. and the Official Committee of Asbestos Personal Injury Claimants is being looked upon by many Libby, Mont. asbestos victims with a great deal of skepticism.
According to an article in The Western News, asbestos victims in the small Montana town worry that there is a lack of specific information about how funds will be dispersed among claimants.
”The issue of health care for those contaminated by asbestos in particular is raising suspicion among claimants,” the article notes. “While the settlement offers approximately $2.9 billion in cash and equity, it does not specify the future of the several health care programs currently operating in Libby.”
The largest of the programs in question is the W.R. Grace-funded Libby Medical Program, established in 2000. William Corcoran, head of Media Relations at the company, insists that “Grace is committed to and will keep funding the Libby Medical Program.” However, there is no legal requirement in the settlement that requires them to do so.
Another program, known as the Libby Asbestos Medical Program (LAMP), is also in question. It resulted from a one-time payment by Grace in order to settle a fine imposed by the Department of Justice.
Red Busby, who suffers from “severe” asbestos poisoning, says he has received no assurances, in writing, that his medication, oxygenation and yearly check-ups will continue once the settlement is agreed upon.
“I’ve heard nothing,” he said. “Whatever they do will be on their own part.”
John Heberling, a lawyer in Kalispell who represents Busby and other Libby victims, is concerned as well. He also noted that “there is no specific agreement that Grace will continue funding the Libby Medical Program or if the plan would continue now that the settlement is reached.”
Only a few specific elements of the deal are known, the article points out. A trust fund will be established with an initial deposit of $250 million, followed by an additional $1.55 billion over from 2019 through 2034. The fund will be guaranteed by 50.1 percent of Grace common stock. Claimants will also be allowed to buy 10 million shares of Grace stock at $17 a share
Of the eleven members on the Personal Injury Committee, Libby represented the only vote against approving the settlement.