Chemical Co. Settles Lawsuit for $1.8 Billion

National News

W.R.Grace, a specialty chemical company that operated plants inMassachusetts and Montana, agreed to a settlement yesterday forasbestos claims brought against the company in a class action lawsuit.

More than 100,000 claims have been brought against W.R.Grace by individuals who claimed to have been injured by exposure toasbestos. Pending approval by U.S. Bankruptcy Judge Judith Fitzgerald,the settlement would allow W.R. Grace to make steps towards moving outof bankruptcy, which the company filed for in 2001, and startcompensating the plaintiffs in the lawsuit.

If the settlement is allowed, the company would immediately deposit$250 million into a trust for victims. Starting in 2019, the companywould contribute an additional $110 million to the trust for fivesuccessive years followed by ten annual payments of $100 million. Theagreement would also make public 10 million shares of W.R. Grace stockthat plaintiffs would be able to purchase for $17 a share for up to oneyear after the company’s reorganization.

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