A bankruptcy judge rejected Montana’s request for an injunction to protect the state from lawsuits by people who claim they were harmed by asbestos released by W.R. Grace’s vermiculite mine in Libby, Montana. The judge said that lawsuits alleging that the State of Montana failed to police the mine or to warn residents and mineworkers of the danger do not present a direct threat to W.R. Grace’s bankruptcy proceedings and therefore an injunction against those lawsuits is not warranted. The bankruptcy proceedings do prevent any asbestos lawsuits against W.R. Grace. Grace has agreed to reimburse the government $250 million for the costs of the clean up, however, and Grace and some of its executives remain under criminal indictment for their actions in Libby. Over 1,200 Libby area residents or former mineworkers have already died or developed serious illnesses as a result of asbestos released from Grace’s vermiculite mine.
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