Owens Corning files for bankruptcy due to mesothelioma lawsuits
Building materials company Owens Corning has announced that it has filed for Chapter 11 bankruptcy protection due to the unknown number of mesothelioma lawsuits it will face in the future. The company had hoped to avoid bankruptcy by settling out of court with plaintiffs in its current mesothelioma lawsuits. But it said that the cost of settling current and future lawsuits made Chapter 11 its only option.
Mesothelioma lawsuits against Owens Corning have been filed because of an asbestos pipe insulation product the company manufactured from 1952 to 1972. Owens Corning says that more than 460,000 mesothelioma lawsuits had been filed against it as of October 2000. So far, it has paid or agreed to pay more than $5 billion in settlements; however, many of these cases are still unresolved, and more mesothelioma lawsuits may be filed in the future as more patients receive a mesothelioma diagnosis.
Mesothelioma, a deadly cancer that can affect the chest, heart or abdomen, is caused by exposure to airborne asbestos particles. Because it can take as much as 50 years for a patient who has been exposed to asbestos to receive a mesothelioma diagnosis, experts predict that the number of new mesothelioma cases will continue to rise over the next 10 to 15 years.