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W.R. Grace & Co. Negotiates $140M Class Action Settlement Over Zonolite

By asbestoshub | December 1, 2008

W.R. Grace & Co. has tentatively negotiated a $140.million class-action settlement over Zonolite Attic Insulation, an asbestos product that was installed in millions of U.S. homes.

The settlement would require W.R. Grace to pay up to $140 million over the next 25 years. The money would go into a trust fund that property owners could tap for 55 percent of the cost of Zonolite removal, but payouts would be capped at $4,125. Zonolite can release needle fibers of tremolite asbestos if it’s disturbed.

In January, a U.S. bankruptcy judge in Delaware will consider the class-action settlement for preliminary approval and it depends on whether W.R. Grace emerges from Chapter 11 bankruptcy. If creditors agree to the company’s reorganization plan, W.R. Grace could be out of bankruptcy by Spring 2009.

The insulation was made from vermiculite mined near Libby, Montana. Earlier this year, W.R. Grace agreed to pay $250 million to clean up contamination in Libby, where asbestosis exposure created an epidemic of lung disease among residents.

On the consumer side, Zonolite was sold as a “do it yourself” insulation in hardware stores for 60 years. W.R. Grace prepared an asbestosis warning label for Zonolite in the 1970s, but never released it. W.R. Grace stopped selling Zonolite in 1984.

More than 10,000 U.S. residents filed claims with U.S. Bankruptcy Court before the October 31, 2008 deadline, saying they had Zonolite insulation in their attics. The class-action settlement would allow people to file Zonolite claims for up to 25 more years.

Topics: Claims, Exposure |

3 Responses to “W.R. Grace & Co. Negotiates $140M Class Action Settlement Over Zonolite”

  1. B.J. Marchant Says:
    January 7th, 2009 at 3:35 am

    I have been doing extensive reading on Zonolite but am unable to find out if lawsuits against wr grace can be filed in canada as that is where we live…. can anyone help me

  2. lucy campbell Says:
    January 13th, 2009 at 10:01 pm

    if you’re looking for canadian claims information go to this site:

    http://www.graceclaims.com/

  3. George Buckrell Says:
    March 5th, 2009 at 2:23 am

    Claimants are required to include a self-addressed, stamped envelope - how does a Canadian do this - Canada postage would not be valid in the US - would it?

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