$5.2 billion settlement awarded to asbestos victims

By Brian Cole

Published on May 10, 2006

The terms of the agreement require Owen Corning to pay an initial $2.9 billion into a trust for asbestos victims and an initial $1.39 billion into the trust ten days after the end of this year’s congressional session. The agreement will allow Owens Corning to emerge from bankruptcy and also stipulates that they must deliver 28.6 million shares or equity in the reorganized company to the trust.

"The path to justice for victims of asbestos cancer and asbestos poisoning by Owens Corning has been a long and difficult one," said John D. Cooney of the Chicago law firm Cooney & Conway, "Although nothing can ever repair the loss of lives that has occurred, today’s settlement represents a fair resolution for both the victims and Owens Corning."

Cooney is the chairman of the official Asbestos Claimants Committee formed by the United States Trustee to represent asbestos plaintiffs after Owens Corning filed for bankruptcy protection in 2000.

Thousands of people have developed mesothelioma from Owens Corning products, said Cooney. Mesothelioma is a lung cancer which is only known to be caused by asbestos.

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