BASF May Face Thousands of Talc-Asbestos Lawsuits After Buying Engelhard
Nine years ago, BASF SE, one of the world's
largest chemical companies, based in Germany and valued at an estimated
$74 billion, made a deal to acquire another firm, Engelhard Corp., for
$5 billion.
Now, that seemingly innocuous deal could end up costing BASF dearly.
Potentially billions of dollars from possibly thousands of asbestos
exposure lawsuits could be coming down the pipeline for BASF. That's
because in buying Engelhard, it also assumed its liabilities.
And now, it appears, Engelhard may have had some major liabilities
with regard to its talc production in the late 1970s and early 1980s.
Talc was routinely used in a wide range of products, from auto tires to
wallboards.
In 1983, without much fanfare, Engelhard was sued. The
allegation was the talc produced by the company's mine contained
asbestos, which is known to cause a rare and deadly form of cancer
called mesothelioma. Depositions were taken in the case, and in sworn
testimony, employees testified that the mine did indeed contain talc.
But the case was quietly settled.
After that, the evidence was sealed. The company and its lawyers
repeatedly in other lawsuits over the course of 20 years insisted the
firm's mines did not contain asbestos. But after BASF assumed the
company's liabilities, a different picture started to emerge.
A daughter of one former scientist for Engelhard sued BASF for
exposure to asbestos in the company's talc products. That scientist
testified as a witness in his daughter's case. She claimed she had been
exposed to asbestos from her father's clothing and during visits to his
work.
In depositions for her case, her father told the court he previously
had been told by company leaders there was asbestos in the talc, but the
firm's legal department advised them to purge all records. Another
former co-worker of his had testified about the 1970s test results that
did show asbestos in the mine.
After those revelations, there are now a growing number of lawsuits
that raise questions about what the company knew, whether its lawyers
acted ethically, and whether thousands of people around the country
should have the right to re-open old cases in light of this new
information. It's being carefully watched by many product liability
attorneys for the fact that it raises questions about whether it is
possible to obtain real justice if companies and their legal teams
actively hide critical evidence in civil litigation.
Our mesothelioma
lawyers understand that if the old cases are allowed to be reopened -
some 10,000 of them - it could cost BASF billions of dollars. There are
presently about 300 lawsuits pending against the company.
One of those plaintiffs has requested class action status. That
complaint alleges the company and its lawyers engaged in fraud and
fraudulent concealment by lying about the presence of the asbestos in
talc, and then further by concealing and destroying evidence related to
those facts while insisting publicly - in sworn court testimony - that
they had done nothing wrong.
A spokesperson for the previous legal team, which was replaced by BASF in 2010, insisted its lawyers acted properly.
For its part, BASF has conceded its research revealed there was some
asbestos in the talc, but it has insisted that this was not the cause of
the injuries asserted.
Help for mesothelioma victims can be found at The Ferraro Law
Firm by calling 1-800-275-3332. Offices in Miami and Washington, D.C.
Additional Resources:
Scientist's Testimony for Dying Daughter Roils Chemical Giant, Sept. 3, 2015, By David Voreacos and Jef Feeley, Bloomberg Business
