The Gori Law Firm
Get Your FREE Case Review 24 Hours A Day
888-362-6890
To protect your safety during the coronavirus (COVID-19) crisis, we offer telephone and video conferences, in addition to face-to-face meetings. Please contact our office today to set up a remote consultation.
More than $3 Billion Recovered For Our Clients

What does the DOJ investigation mean for asbestos trust funds?

Recently, the Department of Justice filed a Statement of Interest regarding the establishment of a new asbestos trust fund. While filing for bankruptcy, the Kaiser Gypsum Company also established funds for an asbestos trust to compensate former employees who got sick after working with asbestos.

This is not the first time that the DOJ has filed a Statement of Interest into a matter like this one. Below are the most frequently asked questions about the DOJ's interest in the matter.

 

What are asbestos trust funds?

As people discovered just how dangerous asbestos was for people who worked with it, lawsuits against companies who knowingly exposed workers to danger began to pour in. These companies began to seek protection in bankruptcy.

Part of those bankruptcy settlements was the formation of trust funds for the people who were harmed by exposure to asbestos while they were working. The trust funds allowed these companies to proceed with bankruptcy, save on litigation expenses and help people who were hurt while working with asbestos. It was a win-win situation.

Why is the DOJ looking into the issue?

If there are too many fraudulent claims, these trust funds could conceivably fail to pay on legitimate later claims.

Asbestos trust funds are also a resource for reimbursing Medicaid for the medical treatment some people receive. Medicaid spends a lot of money each year helping people with asbestos-related illnesses pay for their medical care. The Department of Justice wants to make sure that the asbestos trust funds continue to fulfill this role so that there is Medicare money for people who are not able to get money from one of the trusts.

What is going to happen?

The Department of Justice is not looking to shut down the trust fund system, which has been an historically successful system. Some argue that fraud is an issue in the distribution of these trust funds; others maintain the system is working fine, and making it more difficult for victims to get compensation isn't going to help anything. It remains to be seen what the DOJ's actions will be.

Should asbestos victims worry?

While the press on this issue can be confusing, the bottom line is that asbestos victims can still get the compensation they deserve. There remains over $30 billion in asbestos bankruptcy trusts for distribution. There is no cause for panic. Certainly, no one wants fraud and mismanagement of funds. However, there are still many legitimate asbestos victims who need and deserve compensation after developing mesothelioma. Fortunately, as of today victims can still access those funds by filing a proper legal claim. 

No Comments

Leave a comment
Comment Information

Why Choose The Gori Law Firm?

  1. Experience

    With over 100 years of combined legal experience, we guide our clients through the litigation process by addressing questions and concerns and about the outcome every step of the way. Read More

  2. Results

    The team at The Gori Law Firm fights hard for clients, working to get the compensation and the settlement they deserve, obtaining over $3 billion in verdicts and settlements for our clients. Read More

  3. Team Approach

    We are more than just experienced attorneys: our team is also made up of highly trained paralegals and professionals specially trained to deal with the demands of these complex cases. Read More

  4. Faster Trial Dates

    We know that obtaining funds in a timely manner will help cover medical expenses. The Gori Law Firm works quickly to recover funds and secure the earliest possible trial dates on our client's behalf. Read More

Recognition

Super Lawyers Million Dollar Advocates Forum American Association for Justice
ABA - Defending Liberty - Pursuing Justice Illinois State Bar Association

Fill Out Our Form Today To Get A Free Case Review.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Get a Free Case Review Today

The Gori Law Firm News

The Gori Law Firm Donates to Several Area Food Pantries During the COVID-19 Crisis

Read More >

In The Community

The Gori Law Firm and Global Brew Raise More Than $20,000 at Recent Oktoberfest Event

More Community & Events >

Read Our White Paper

A Continuing Threat: How Deadly Legacy Of Asbestos Haunts Navy Veterans Today >
${site.data.firmName}

Edwardsville Office
The Gori Law Firm
156 North Main Street
Edwardsville, IL 62025
Edwardsville Law Office Map

Washington, DC Office
The Gori Law Firm
1875 Connecticut Ave. NW
10th Floor

Washington, DC 20009
Washington Law Office Map

New Orleans Office
The Gori Law Firm
909 Poydras Street, Suite 2195
New Orleans, LA 70112
New Orleans Law Office Map

Los Angeles Office
The Gori Law Firm
3878 Carson Street, Suite 210
Torrance, CA 90503
Torrance Law Office Map

New York Office
The Gori Law Firm
360 Lexington Avenue
20th Floor
New York, NY 10017
New York Law Office Map

Orlando Office
The Gori Law Firm
37 N. Orange Ave., Suite 1100F
Orlando, FL 32801
Orlando Law Office Map

Granite City Office
The Gori Law Firm
2862 Madison Avenue
Granite City, IL 62040
Granite City Law Office Map

Get Your FREE Case Review 24 Hours A Day 888-362-6890
Close X

Contact Us For A Free Case Assessment

Back To Top