Mesothelioma victims misled by James Hardie about compensation

Apr 29, 2009

In a lawsuit filed by the Australian Securities and Investment Commission, an Australian court has held that 10 former executives of James Hardie Industries misled mesothelioma victims by suggesting that the company had set aside adequate funds to compensate asbestos victims. The court said that an announcement in 2001 that the company’s fund would provide certain compensation to those who became sick from the company’s asbestos-containing building materials. But within 2 years, the fund had been proven to be grossly inadequate. The court has not ruled on what penalties the executives may have to pay.

James Hardie, the largest asbestos manufacturer in Australian, stopped selling asbestos products in 1987. The company generally exports 75 percent of its building materials to the United States. Because of the slump in the U.S. housing market, the company claims it does not have cash available to make its scheduled contribution to the asbestos fund this year.

For the full story, go to the LA Times.

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