/raid1/www/Hosts/bankrupt/CAR_Public/121019.mbx
C L A S S A C T I O N R E P O R T E R
Friday, October 19, 2012, Vol. 14, No. 208
Headlines
BLACK LANE: Class Action Hearing Set for October 31
CANADA: Injured Veterans to Get Compensation
CENTRAL BANCORP: Inks Stipulation to Dismiss Merger-Related Suit
CHILDREN'S APPAREL: Recalls 6,200 Fleece Hoodie and T-Shirt Sets
CHINA NATURAL: Continues to Defend 2nd Amended Securities Suit
CHINA TRANSINFO: Defends Consolidated Shareholder Suit in Nevada
CITIBANK: Interchange Fee Suit Settlement Documents Due Today
COMVERSE INC: Continues to Face Israeli Optionholders Suits
DISH DBS: US Supreme Ct. Opinion Sought in Channel Bundling Suit
DOLLAR TREE: Begins Investigation on Assistant Manager's Suit
DOLLAR TREE: Class Suit by Ex-Associates in Illinois Stayed
DOLLAR TREE: Continues to Defend Assistant Managers' Class Suit
DOLLAR TREE: Continues to Defend Wage and Hour Suit in Calif.
FIRST DATA: Faces Class Action Over Hidden Insurance Fees
GENON POWER: Judge Dismisses Class Action Over Property Damage
HINES NUT: Recalls Salted Jumbo Virginia In-Shell Peanuts
HOLIDAY INN: Class Action Lead Plaintiff Dismissed
INDEPENDENT BANK: Signed Accord to Dismiss Merger-Related Suit
J. ALEXANDER'S CORP: Awaits Final OK of Deal in Ex-worker's Suit
J. ALEXANDER'S CORP: Faces Suit Over Proposed Fidelity Merger
KIT DIGITAL: Wurld Media-Related Suit Still Pending
KIT DIGITAL: Continues to Defend Securities Suit in New York
KNOWLEDGE HOUSE: Former Shareholders Mull Class Action
LAO CHAREUNE: Recalls 8,200 Pounds of Beef and Pork Products
LIVEDEAL INC: To Seek Approval of Deal in Consumer Suit in Wash.
MACY'S INC: Reaches Class Settlement in Ohio ERISA Lawsuit
MARVELL TECHNOLOGY: Gets Final OK on Wage and Hour Class Deal
MONDELEZ GLOBAL: Recalls Green & Black's Organic Chocolate Bar
MUNICIPAL MORTGAGE: Md. Court Junks Wrongdoing Charges in Lawsuit
NEW ENGLAND: Faces Class Action Over Injectable Steriod
OVERHILL FARMS: Calif. Court Denies Certification of Wages Suit
PANDORA MEDIA: Plea to Dismiss Personal Info Suit Still Pending
PANDORA MEDIA: Plea to Dismiss Suit Over Video Rental Law Pending
PENSON WORLDWIDE: Bid to Dismiss "Friedman" Suit Pending in Texas
PERRIGO CO: Hearing on Cert. Bid in Eltroxin Suit on Feb. 2013
PERRIGO CO: Agrees to Settle Shareholder Class Suit in New York
PETERBOROUGH HOSPITAL: Patients Mull Privacy Breach Class Action
POLY IMPLANTS: Ruptured Breast Implants Have Long-Term Effects
PORTFOLIO RECOVERY: 9th Cir. Upholds TCPA Class Certification
QWEST COMMS: Discussions in Fiber-Optic Cable Suits Still Ongoing
SEARS HOLDINGS: Continues to Defend Wage and Hour Class Suits
SHELL: Judge Tosses "Hot Fuel" Settlement Offers
TYSON FOODS: FSIS Lists Stores That Received Recalled Products
VISA: RILA Opposes Class Action Interchange Settlement
WAL-MART STORES: Texas Judge Tosses Gender Bias Class Claims
WALT DISNEY: Theme Park Settlement on Brink of Collapse
WESTERN HEALTH: Has Yet to File Defense in Privacy Class Action
WOODLANDS SCHOOL: Class Action Settlement Deadline Extended
WORLDWIDE ASSET: Settlement Spurs Debt Collection Suit Dismissal
XL FOODS: Faces Class Action Over Tainted Beef
Asbestos Litigation
ASBESTOS UPDATE: Liberty Mutual Fails in Bid to Dismiss Suit
ASBESTOS UPDATE: Ariz. Court Junks Inmate's Asbestos Claims
ASBESTOS UPDATE: NY Court Junks Worker's Appeal as Improper
ASBESTOS UPDATE: Parties Must Explain Breach of Duty Claims
ASBESTOS UPDATE: Carpenter's Illness Tied to TLC Products
ASBESTOS UPDATE: Claims Against RPM International Remain Stayed
ASBESTOS UPDATE: H.B. Fuller Estimates $0.5M Probable Liabilities
ASBESTOS UPDATE: GenCorp Had 146 PI Cases Pending as of Aug. 31
ASBESTOS UPDATE: 14 Japan Sites Have High Levels of Airborne Fibro
ASBESTOS UPDATE: Discovery Could Hasten Mesothelioma Diagnosis
ASBESTOS UPDATE: EMU Complete Assessment Suggests Major Abatement
ASBESTOS UPDATE: Expert Clarifies How Fibro Affects Public Health
ASBESTOS UPDATE: Sioux City Approves Advanced Environmental Bid
ASBESTOS UPDATE: Study Suggest Fibro May Cause Many Other Diseases
ASBESTOS UPDATE: PI Panel Allowed to Intervene in Garlock Case
ASBESTOS UPDATE: EMU Building Stirs University of Oregon Students
ASBESTOS UPDATE: Mesothelioma Survivor Suffers 'Chemo Brain'
ASBESTOS UPDATE: More Studies Still Needed for Protein Discovery
ASBESTOS UPDATE: Canadian Mine Confirms Cancellation of Gov't Loan
ASBESTOS UPDATE: Fibro Issue at Sorell Site Probed
ASBESTOS UPDATE: Criminal Fines Pushed on Kadina High Fibro Dumper
ASBESTOS UPDATE: Oklahoma Gets $240,000 Asbestos Inspections Fund
ASBESTOS UPDATE: Hoboken Public Library Completes Abatement
ASBESTOS UPDATE: Hartford Financial Faces $25 Million Lawsuit
ASBESTOS UPDATE: Senators Push For EPA's Proposed Safety Standard
ASBESTOS UPDATE: Sorell Residents Question Council's Effeciency
ASBESTOS UPDATE: Former St. Edward School Awaits Demolition Date
ASBESTOS UPDATE: Jury Selection in Meso Lawsuit v. Ford, 51 Others
ASBESTOS UPDATE: Fibro Stalls Demolition of Old Clock Factory
ASBESTOS UPDATE: No Fibro Issue at North Common Village Project
ASBESTOS UPDATE: Advocates Boost Awareness Drive in South Tyneside
ASBESTOS UPDATE: Fibro Find Closes Some Areas of Camp Hale, CO
ASBESTOS UPDATE: Abatement of Old Saratoga Highway Garage Resumes
ASBESTOS UPDATE: Mower Cty Grandstands Plan to Be Decided Oct. 23
ASBESTOS UPDATE: Fibro Found in 20 Roe Valley Schools
ASBESTOS UPDATE: Delaware Court Accepts Case Rejected in Calif.
ASBESTOS UPDATE: Fibro Report Closes Cwmcarn School Indefinitely
ASBESTOS UPDATE: 900 Students In Limbo Due to School Contamination
ASBESTOS UPDATE: Camp Hale in CO Shuts Down for Decontamination
ASBESTOS UPDATE: UK Firm Cited for Putting Subcontractors at Risk
ASBESTOS UPDATE: Parents Irked on Cwmcarn School Abrupt Closure
ASBESTOS UPDATE: First Meso Verdict Reached Against Hercules Inc.
ASBESTOS UPDATE: Victims' Attorneys Back Up Warren, Group Says
ASBESTOS UPDATE: Citadel Plaza Developer Gets 5 Years Probation
ASBESTOS UPDATE: LHA Director Stumps HazMat Mishandling Claims
ASBESTOS UPDATE: Newly Abated Bathurst Saleyards Open For Business
ASBESTOS UPDATE: Fort Lee to Grant Professional Asbestos Services
ASBESTOS UPDATE: HSE Asked to Investigate Cwmcarn Contagion
ASBESTOS UPDATE: Fire Razes Windsor Gardens House With Toxic Fibro
ASBESTOS UPDATE: Funds for John Evans School Cleanup Unaccounted
ASBESTOS UPDATE: Chico State U Stumps Down Alleged Fibro Dangers
ASBESTOS UPDATE: Georgia Pacific, 80 Others Face Meso Lawsuit
ASBESTOS UPDATE: Terre Haute High School Fibro Problem Solved
*********
BLACK LANE: Class Action Hearing Set for October 31
---------------------------------------------------
Ann Maher, writing for The Madison St. Clair Record, reports that
Madison County Associate Judge Stephen Stobbs continued a hearing
on a defense motion to dismiss a proposed class action against a
Caseyville towing company.
Plaintiff's attorney Thomas Maag asked Judge Stobbs for another 10
days to consider a reply brief he received from defense counsel
Thomas Frenkel on the eve of the hearing at 4:30 p.m.
Mr. Frenkel, who represents Black Lane Auto Parts, argued that the
documents faxed on Oct. 11 included documents previously produced
in discovery and one new affidavit. He said there were "no new
facts" in what was sent to Mr. Maag on Oct. 11.
The hearing on the motion to dismiss was docketed last month, but
was continued when Mr. Maag asked for substitution of judge.
Associate Judge Thomas Chapman presided before Judge Stobbs.
Judge Stobbs gave Mr. Maag seven days, not 10, but set hearing for
1:30 p.m. on Oct. 31.
Mr. Maag represents Tiffany A. Craycraft of East Alton who alleges
Black Lane towed her 2000 Ford Taurus from a Caseyville road on
April 11 without her consent.
She seeks damages for alleged violations of the Illinois Vehicle
Code under its Ant-Theft Laws and Abandoned Vehicles chapter, as
well as under the Illinois Consumer Fraud Act because when she
retrieved her vehicle she did not receive a detailed, signed
receipt showing the legal name of the towing service.
At the hearing on Oct. 12, Mr. Frenkel told Judge Stobbs that he
had filed his motion to dismiss on Aug. 8, but did not receive
Mr. Maag's reply until Oct. 9.
Judge Stobbs noted that both parties "fired off late."
Mr. Maag said he was "not asking for a lot of time" in his
petition to continue the hearing.
"It took 20 minutes for it to come through the fax," he said,
having noted previously that the documents numbered 50-60 pages.
Ms. Craycraft's lawsuit was filed four weeks after her vehicle was
towed from a turning lane on Highway 157 that leads to eastbound
Interstate 64.
She had been arrested by Caseyville Police at 2:30 a.m. after she
was observed disobeying a traffic light, court documents show.
During the traffic stop, Caseyville officer Andrew Schuler
determined that Ms. Craycraft was the subject of an outstanding
warrant issued by the St. Clair County Circuit Clerk, and she was
taken into custody.
Mr. Schuler wrote in an affidavit attached to Black Lane's brief
in support of dismissing the suit that the vehicle had posed a
serious traffic hazard, which is why a "police tow" was authorized
to remove Ms. Craycraft's vehicle.
Black Lane argues that plaintiff's individual claims should be
dismissed with prejudice and Mr. Maag's motion for class
certification should be denied.
"Defendant effected a police tow of an unattended vehicle, a 2000
Ford Taurus, incidental to Plaintiff's arrest, from a location in
a traffic lane of a public highway where it presented a traffic
hazard, at the direction of a law enforcement agency, all in the
interest of public safety," Mr. Frenkel wrote.
"Accordingly, the 2000 Ford Taurus was properly towed under
subsection of 4-203(d) of the Code as the tow was ordered by
police from a public highway to a police impound lot. And because
the tow was a police tow from a public highway, the Code's receipt
requirement, which applies only to towing or removal of a vehicle
from private property, does not apply."
In Mr. Magg's Oct. 9 response to Black Lane's motion to dismiss,
he states, ". . .[I]nstead of limiting the motion to the relevant
facts, Defendant, in an effort to smear the Plaintiff, includes
irrelevant and meaningless material in the record that this court
should not, and cannot consider."
Madison County Circuit Court case number: 12-L-641
CANADA: Injured Veterans to Get Compensation
--------------------------------------------
The Canadian Press reports that federal lawyers have agreed to a
fast-track formula that will see about 900 of the country's most
severely injured veterans compensated for a clawback of their
disability pensions.
A letter signed by the lawyers involved in a class-action lawsuit
against the Conservative government -- obtained by The Canadian
Press -- calls the payments an interim step while negotiations
continue toward a settlement with more than 4,500 former soldiers.
Up until last spring, the federal government was fighting a drawn-
out legal battle against the class-action claim by veterans whose
long-term disability benefits were reduced by the amount of their
monthly disability pensions.
Last May, a Federal Court judge "unreservedly" rejected the
government's arguments.
Defence Minister Peter MacKay ordered the claw-back to end July 1,
but the most severely disabled veterans continued to lose
disability benefits because other payments exceeded the limit of
75 per cent of their military salaries.
The lawyers say interim payment to those clients will begin on
Oct. 22.
Those with the most grievous injuries, known as "zero-sum"
clients, should have seen an immediate reinstatement of the
benefits, particularly since many can't work and must rely solely
on pain and suffering awards, veterans' advocates have argued.
Veterans of the war in Afghanistan will benefit the most from the
fast-track process, they added.
The payments are being made regardless of the outcome of the
overall negotiations; it remains unclear how much money will be
involved.
The private insurance company that manages the file, Manulife
Financial, has a list of those who qualify and will do a case-by-
case assessment in the new year to determine whether each
individual's payments will be permanent, and at what rate.
After deciding not to appeal the Federal Court ruling last spring,
the government appointed a negotiating team to arrive at an
overall settlement, something that is now not expected to be
finalized until January.
Internal government estimates have suggested the settlement could
run to $600 million, but that figure could prove on the low side:
negotiators have discussed setting the compensation cut-off date
at 1976, the year the program was established.
Earlier last week, Veterans Affairs Minister Steven Blaney
announced his department was immediately ending the controversial
policy of clawing back the benefit payments of disabled soldiers,
a separate program from the one run by National Defence.
Mr. Blaney's decision was also a consequence of the Federal Court
ruling.
The government will no longer deduct the amount of a veteran's
pension from benefits for lost earnings and Canadian Forces income
support, a move that is expected to cost the federal treasury over
$177 million in the next five years.
Niklaus Schwenker, a spokesman for Mr. Blaney, said the original
court ruling was focused on National Defence and extending it was
not something the government was obliged to do.
"While the court decision did not address Veterans Affairs Canada,
Minister Blaney and our government decided to go above and beyond
by harmonizing relevant Veterans Affairs Canada programs,"
Mr. Schwenker said.
CENTRAL BANCORP: Inks Stipulation to Dismiss Merger-Related Suit
----------------------------------------------------------------
Central Bancorp, Inc. entered into a stipulation to dismiss a
merger-related class action lawsuit in Massachusetts, according to
the Company's August 16, 2012, Form 8-K filing with the U.S.
Securities and Exchange Commission.
On August 14, 2012, Independent Bank Corp. ("Independent") and
Central Bancorp, Inc. ("Central") issued a joint press release
reporting that a Stipulation of Dismissal (the "Stipulation") has
been filed by the parties to a previously-reported lawsuit brought
in Superior Court in Middlesex County, Massachusetts on July 17,
2012. The lawsuit, which purported to be a class action against
Central, each of Central's directors, and Independent, related to
certain alleged actions by the named defendants in connection with
the proposed merger of Central with and into Independent. The
Stipulation dismisses the lawsuit with prejudice as to the named
plaintiff and provides that the parties will bear their own
attorneys' fees and costs.
About Central Bancorp., Inc.
Central Bancorp, Inc. is the holding company for Central Bank,
whose legal name is Central Co-Operative Bank and which was
founded in 1915 as a Massachusetts chartered co-operative bank to
provide savings deposits and originate mortgage loans. Central
Bank is a full-service community banking operation that provides a
variety of deposit and lending services -- including savings and
checking accounts for retail and business customers, mortgage
loans for constructing, purchasing and refinancing residential and
commercial properties, and loans for education, home improvement
and other purposes. Central Bank operates nine full-service
offices in the Massachusetts communities of Somerville, Arlington,
Burlington, Chestnut Hill, Malden, Medford, Melrose, and Woburn
(two branches).
CHILDREN'S APPAREL: Recalls 6,200 Fleece Hoodie and T-Shirt Sets
----------------------------------------------------------------
The U.S. Consumer Product Safety Commission, in cooperation with
Children's Apparel Network, Ltd. of New York, announced a
voluntary recall of about 6,200 Fleece Hoodie and T-Shirt Sets.
Consumers should stop using recalled products immediately unless
otherwise instructed. It is illegal to resell or attempt to
resell a recalled consumer product.
The surface coating on the zipper of the fleece hoodie and t-shirt
sets contain excessive levels of lead, violating the federal lead
paint standard.
No incidents or injuries have been reported.
The recalled product is a two-piece coordinated set with fleece
hoodie and t-shirt. They were sold in red/white, gray/red, and
black/blue color combinations and in assorted sizes from 12M to
5T. The hoodies have Disney character designs in three different
styles. "RN 16435" and the following identification number,
corresponding to the style, are printed on the label along the
hoodie's side seam:
Style Description ID Number
----------------- ---------
Red Fleece Hoodie with Snow White DP4253B
Grey Fleece Hoodie with Mickey Mouse J4821
Blue Fleece Hoodie with Cars J4820-A
Pictures of the recalled products are available at:
http://www.cpsc.gov/cpscpub/prerel/prhtml13/13008.html
The recalled products were manufactured in Pakistan and sold
exclusively at Target stores nationwide and Target.com from
October 2011 through December 2011 for approximately $18.
Consumers should take the product away from the child immediately
and return the set to any Target store for a full refund. For
additional information, contact Children's Apparel Network at
(800) 919-1917 between 9:00 a.m. and 4:00 p.m. Central Time Monday
through Friday, or visit the firm's Web site at
http://www.childrensapparelnetwork.com/and click on the "Press"
link.
CHINA NATURAL: Continues to Defend 2nd Amended Securities Suit
--------------------------------------------------------------
China Natural Gas, Inc. continues to defend a second amended
securities class action complaint in Delaware, according to the
Company's August 14, 2012, Form 10-Q filing with the U.S.
Securities for the quarter ended June 30, 2012.
On August 26, 2010, plaintiff Maxwell Vandevelde filed a putative
class action against the Company and certain of its current and
former officers and directors alleging that the defendants
violated U.S. federal securities laws. The case is captioned
Vandevelde v. China Natural Gas, Inc., et al. (Case No.
1:10CV00728, United States District Court for the District of
Delaware). On August 12, 2011, the Court entered an order
appointing Robert Skeway, an individual investor, as lead
plaintiff and approving his selection of lead counsel. Lead
plaintiff and Raimundo Jo-Fung, another individual investor, who
together seek to represent a class of all purchasers and acquirers
of the Company's common stock between March 10, 2010 and September
21, 2011, filed an amended complaint on October 11, 2011.
Plaintiffs assert claims for violations of Section 10(b) of the
Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The
amended complaint alleges the defendants made false or misleading
statements in the Company's Annual Reports on Form 10-K for the
years ended December 31, 2009, and December 31, 2010, and in
various quarterly reports, by purportedly failing to disclose a
series of loans and related party transactions. The amended
complaint also asserts claims against certain of the Company's
current and former officers and directors for violations of
Section 20(a) of the Securities Exchange Act of 1934. The suit
seeks unspecified monetary damages.
On December 12, 2011, the Company filed a motion to dismiss. On
July 6, 2012, the Court entered an order granting the Company's
motion to dismiss in its entirety. The Court's order also granted
plaintiffs leave to amend their complaint.
On July 27, 2012, lead plaintiff, Mr. Jo-Fung and Matthew Michael,
another individual investor, filed a second amended complaint.
The second amended complaint asserts the same Section 10(b) claims
against the Company as the amended complaint. The second amended
complaint also asserts the same Section 20(a) claims against the
Company's former officers, but does not assert any claims against
the Company's current or former outside directors. The suit seeks
unspecified monetary damages. The Company cannot provide at this
time any assurance that the outcome of this suit will not be
materially adverse to the Company's financial condition,
consolidated results of operations, cash flows or business
prospects.
China Natural Gas, Inc. was incorporated in the State of Delaware
on March 31, 1999. The Company through its wholly owned
subsidiaries and variable interest entity (VIE), Xi'an Xilan
Natural Gas Co., Ltd. (XXNGC) and subsidiaries of its VIE, which
are located in Hong Kong, Shaanxi Province, Henan Province and
Hubei Province in the People's Republic of China (PRC), engages in
sales and distribution of natural gas and gasoline to commercial,
industrial and residential customers through fueling stations and
pipelines, construction of pipeline networks, installation of
natural gas fittings and parts for end-users, and conversions of
gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered
vehicles at automobile conversion sites.
CHINA TRANSINFO: Defends Consolidated Shareholder Suit in Nevada
----------------------------------------------------------------
China Transinfo Technology Corp. is defending itself against a
consolidated shareholder class action complaint in Nevada,
according to the Company's August 14, 2012, Form 10-Q filing with
the U.S. Securities and Exchange Commission for the quarter ended
June 30, 2012.
The Company and the members of its board of directors are named as
defendants in purported class action lawsuits (the Stockholder
Actions) brought in the Eighth Judicial District Court, Clark
County, Nevada, by several stockholders: Oswald Velz v. China
TransInfo Technology Corp. et al., Case No. A-12-657022-C (filed
February 24, 2012), Tim Valles v. Shudong Xia et al. Case No. A-
12-657443-C (filed March 1, 2012) and Carl M. Domitrovich v.
Shudong Xia et al. Case No. A-12-657740-C (filed March 6, 2012).
The Stockholder Actions generally allege that the Company and all
of its directors breached their fiduciary duties in connection
with the receipt by the Company of a preliminary, non-binding
proposal from Shudong Xia, the Company's Chairman and Chief
Executive Officer, to acquire all of the outstanding shares of its
common stock not currently owned by him in a going private
transaction at a proposed price of $5.65 per share in cash (the
Proposed Transaction). The Stockholder Actions seek, among other
things, to declare that the Proposed Transaction is unfair, unjust
and inequitable, to enjoin the Company from taking any steps
necessary to accomplish or implement the Proposed Transaction, and
damages in the event the Proposed Transaction is consummated.
On July 13, 2012, the above three class action complaints were
consolidated into one amended class action complaint, In Re China
TransInfo Technology Corp. Shareholders' Litigation, Consolidated
Case No. A-12-657022-B, filed in the Eighth Judicial District
Court and against the Company's directors and some other parties
to the Proposed Transaction.
Nevertheless, at this stage of the proceedings, management cannot
opine that a favorable outcome for the Company is probable or that
an unfavorable outcome to the Company is remote. There is no
reasonable estimate of any impact of the outcome of the litigation
or related legal fees on the financial statements can be made as
of August 14, 2012, the Company says.
China TransInfo Technology Corp. is a provider of end-to-end
intelligent transportation systems (ITS) and related comprehensive
technology solutions servicing the transportation industry in
China. The goal of the Company is to become the largest provider
of intelligent transportation system products and related
comprehensive technology solutions in China, as well as a major
operator and provider of value-added ITS and location based
services (LBS) to commercial clients and consumers in China.
Substantially all of its operations is conducted through its
Variable Interest Entities (VIE) that are PRC domestic companies
owned principally or entirely by its PRC affiliates. Through its
VIE, the Company is involved in developing multiple applications
in highway ITS, urban ITS, commercial vehicles ITS plus LBS, and
to a lesser degree, in digital city, and land and resource filling
systems based on Geographic Information Systems (GIS),
technologies which are used to service both the public and private
sector.
CITIBANK: Interchange Fee Suit Settlement Documents Due Today
-------------------------------------------------------------
Citibank Credit Card Issuance Trust disclosed in its August 15,
2012, Form 10-D filing with the U.S. Securities and Exchange
Commission, that parties to an antitrust litigation over
interchange fees are scheduled to file definitive documentation of
their settlement with the court today, October 19, 2012.
On July 13, 2012, all parties to the putative class actions
captioned IN RE PAYMENT CARD INTERCHANGE FEE AND MERCHANT DISCOUNT
ANTITRUST LITIGATION entered into a Memorandum of Understanding
(MOU) setting forth the material terms of a class settlement. The
settlement described in the MOU is subject to a number of
conditions, including agreement on definitive documentation of the
settlement, any necessary approvals by the boards of directors of
the parties, defendants' entry into settlement agreements with
certain merchants that have filed separate individual actions
against the Visa and MasterCard networks, and preliminary and
final approval by the court. The class settlement contemplated by
the MOU provides for, among other things, a total payment by all
defendants to the class of $6.05 billion; a rebate to merchants
participating in the class settlement of 10 basis points on
interchange collected for a period of eight months by the Visa and
MasterCard networks; changes to certain network rules that would
permit merchants to surcharge some payment card transactions
subject to certain limitations and conditions, including
disclosure to consumers at the point of sale; and broad releases
in favor of the defendants. The court has ordered the parties to
file definitive documentation of the settlement with the court for
preliminary approval no later than October 19, 2012.
COMVERSE INC: Continues to Face Israeli Optionholders Suits
-----------------------------------------------------------
Comverse, Inc.'s parent and subsidiaries continue to face
potential class action lawsuits brought by Israeli optionholders,
according to the Company's August 15, 2012, Form 10-12B/A filing
with the U.S. Securities and Exchange Commission.
The Company's parent, Comverse Technology, Inc. (CTI) and certain
of its subsidiaries, including Comverse Ltd. (a Company
subsidiary), were named as defendants in four potential class
action litigations in the State of Israel involving claims to
recover damages incurred as a result of purported negligence or
breach of contract that allegedly prevented certain current or
former employees from exercising certain stock options. The
Company says it intends to vigorously defend these actions.
Two cases were filed in the Tel Aviv District Court against CTI on
March 26, 2009, by plaintiffs Katriel (a former Comverse Ltd.
employee) and Deutsch (a former Verint Systems Ltd. employee).
The Katriel case (Case Number 1334/09) and the Deutsch case (Case
Number 1335/09) both seek to approve class actions to recover
damages that are claimed to have been incurred as a result of
CTI's negligence in reporting and filing its financial statements,
which allegedly prevented the exercise of certain stock options by
certain employees and former employees. By stipulation of the
parties, on September 30, 2009, the court ordered that these
cases, including all claims against CTI in Israel and the motion
to approve the class action, be stayed until resolution of the
actions pending in the United States regarding stock option
accounting, without prejudice to the parties' ability to
investigate and assert the unique facts, claims and defenses in
these cases. On April 4, 2012, plaintiffs filed a motion to lift
the stay based on the resolution of the actions in the United
States. On May 7, 2012, the court lifted the stay, and the
plaintiffs have filed an amended complaint and motion to certify a
class of plaintiffs in a single consolidated class action. The
defendants' deadline to respond is October 24, 2012.
On July 13, 2012, plaintiffs filed a motion seeking an order that
CTI hold back $150 million in assets as a reserve to satisfy any
potential damage awards that may be awarded in this case, but does
not seek to enjoin the share distribution. The Company does not
believe that the motion has merit. On July 25, 2012, the court
ordered that CTI's deadline to respond was September 20, 2012, and
that the court will not rule on the motion until after it rules on
plaintiffs' motion to certify a class of plaintiffs.
Two cases were also filed in the Tel Aviv Labor Court by
plaintiffs Katriel and Deutsch, and both seek to approve class
actions to recover damages that are claimed to have been incurred
as a result of breached employment contracts, which allegedly
prevented the exercise by certain employees and former employees
of certain CTI and Verint Systems stock options, respectively.
The Katriel litigation (Case Number 3444/09) was filed on
March 16, 2009, against Comverse Ltd., and the Deutsch litigation
(Case Number 4186/09) was filed on March 26, 2009, against Verint
Systems Ltd. The Tel Aviv Labor Court has ruled that it lacks
jurisdiction, and both cases have been transferred to the Tel Aviv
District Court. These cases have been consolidated with the Tel
Aviv District Court cases.
Additional cases have been filed by individual plaintiffs
similarly seeking to recover damages up to an aggregate of $3.5
million allegedly incurred as a result of the inability to
exercise certain stock options. The cases generally allege the
same causes of actions alleged in the potential class action.
DISH DBS: US Supreme Ct. Opinion Sought in Channel Bundling Suit
----------------------------------------------------------------
Plaintiffs are asking the U.S. Supreme Court to review the
dismissal of their channel bundling class action complaint against
DISH DBS Corporation in California, according to the Company's
August 14, 2012, Form 10-Q filing with the U.S. Securities and
Exchange Commission for the quarter ended June 30, 2012.
During 2007, a purported class of cable and satellite subscribers
filed an antitrust action against the Company's wholly owned
subsidiary, DISH Network L.L.C., in the United States District
Court for the Central District of California. The suit also names
as defendants DirecTV, Comcast, Cablevision, Cox, Charter, Time
Warner, Inc., Time Warner Cable, NBC Universal, Viacom, Fox
Entertainment Group and Walt Disney Company. The suit alleges,
among other things, that the defendants engaged in a conspiracy to
provide customers with access only to bundled channel offerings as
opposed to giving customers the ability to purchase channels on an
"a la carte" basis. On October 16, 2009, the District Court
entered an order granting the defendants' motion to dismiss with
prejudice. On June 3, 2011, the U.S. Court of Appeals for the
Ninth Circuit affirmed the District Court's order. The plaintiff
class sought rehearing en banc. On October 31, 2011, the Ninth
Circuit issued an order vacating the previous June 3, 2011 order,
directing that a 3-judge panel be reconstituted, and denying the
plaintiff class' motion for rehearing. On March 30, 2012, the
reconstituted panel of the Ninth Circuit again affirmed the
District Court's order. On April 10, 2012, the plaintiff class
again filed a petition for rehearing en banc, which was denied on
May 4, 2012. On August 2, 2012, the plaintiff class filed a
petition seeking review by the United States Supreme Court.
The Company intends to vigorously defend this case. It cannot
predict with any degree of certainty the outcome of the suit or
determine the extent of any potential liability or damages.
Dish DBS Corporation is a major satellite and subscription and
pay-per-view television provider.
DOLLAR TREE: Begins Investigation on Assistant Manager's Suit
-------------------------------------------------------------
Dollar Tree, Inc. disclosed in its August 16, 2012, Form 10-Q
filing with the U.S. Securities and Exchange Commission for the
quarter ended July 28, 2012, that it has just begun its
investigation of the allegations contained in a complaint filed by
a former assistant store manager in California.
In July 2012, a former assistant store manager, on behalf of
himself and those similarly situated, filed a class action
Complaint in a California state court, alleging a failure of the
Company to provide paid ten-minute rest breaks to assistant store
managers in California who worked one or more work periods in
excess of three and one-half hours during which they were relieved
of all duties. The alleged relevant time period is
July 13, 2008, to the present. The Company has just begun its
investigation of the allegations contained in the Complaint.
The Company says it will vigorously defend itself in the matter.
The Company does not believe that any of these matters against it
will, individually or in the aggregate, have a material effect on
its business or financial condition. The Company cannot give
assurance, however, that one or more of these lawsuits will not
have a material effect on its results of operations for the period
in which they are resolved. Based on the information available to
the Company, including the amount of time remaining before trial,
the results of discovery and the judgment of internal and external
counsel, the Company is unable to express an opinion as to the
outcome of these matters and cannot estimate a potential range of
loss.
Dollar Tree, Inc. -- http://www.dollartreestoresinc.com--
operates discount variety stores in the United States and Canada.
Its stores offer merchandise primarily at the fixed price of
$1.00. The Company operates its stores under the names of Dollar
Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills.
The Company was founded in 1986 and is based in Chesapeake,
Virginia.
DOLLAR TREE: Class Suit by Ex-Associates in Illinois Stayed
-----------------------------------------------------------
The class action lawsuit initiated by three former associates of
Dollar Tree, Inc. in Illinois has been stayed, according to the
Company's August 16, 2012, Form 10-Q filing with the U.S.
Securities and Exchange Commission for the quarter ended July 28,
2012.
In May 2012, three associates who were formerly employed at the
Company's distribution center in Joliet, Illinois, filed a Rule 23
class action lawsuit in federal court in Illinois alleging that at
the time of their termination of employment, they failed to
receive compensation for their accrued paid time off. They
brought this case on behalf of themselves and those former
associates similarly situated. A stay of the case has been
granted upon motion by both parties so that a possible early
resolution of the matter could be explored. No trial date has
been set.
The Company says it will vigorously defend itself in the matter.
The Company does not believe that any of these matters against it
will, individually or in the aggregate, have a material effect on
its business or financial condition. The Company cannot give
assurance, however, that one or more of these lawsuits will not
have a material effect on its results of operations for the period
in which they are resolved. Based on the information available to
the Company, including the amount of time remaining before trial,
the results of discovery and the judgment of internal and external
counsel, the Company is unable to express an opinion as to the
outcome of these matters and cannot estimate a potential range of
loss.
Dollar Tree, Inc. -- http://www.dollartreestoresinc.com--
operates discount variety stores in the United States and Canada.
Its stores offer merchandise primarily at the fixed price of
$1.00. The Company operates its stores under the names of Dollar
Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills.
The Company was founded in 1986 and is based in Chesapeake,
Virginia.
DOLLAR TREE: Continues to Defend Assistant Managers' Class Suit
---------------------------------------------------------------
Dollar Tree, Inc. continues to defend itself against five
collective lawsuits brought by assistant store managers alleging
they were forced to work off the clock in violation of the Fair
Labor Standards Act, according to the Company's August 16, 2012,
Form 10-Q filing with the U.S. Securities and Exchange Commission
for the quarter ended July 28, 2012.
In the summer and fall of 2011, five collective action lawsuits
were filed against the Company in federal courts in Georgia,
Colorado, Florida, Michigan and Illinois by different assistant
store managers, each alleging he or she was forced to work off the
clock in violation of the Fair Labor Standards Act. Plaintiffs
also assert various state law claims for which they seek class
treatment. The Georgia lawsuit sought statewide class
certification. The state-based claims in the Georgia action have
been dismissed and on the Company's motion the case was
transferred to the U.S. District Court for the Eastern District of
Virginia where it awaits rulings on a pending motion to dismiss.
The Florida, Colorado, Michigan and Illinois cases seek nationwide
certifications. The Illinois case, in addition to assistant store
managers, also includes a purported class of all other hourly
store associates, and makes the same allegations on their behalf.
The Company filed motions to dismiss and motions to transfer venue
to the Eastern District of Virginia in each of the four cases.
The Illinois case was transferred in June to the Eastern District
of Virginia where it awaits ruling on the pending motion to
dismiss. To date, the only cases in which plaintiffs have sought
class certification are the Illinois and Colorado actions. The
Colorado case is scheduled to proceed to trial in March 2013 and
the Florida case in July 2013. The Illinois and Georgia cases
which were transferred to the Eastern District of Virginia await
entry of a Scheduling Order.
The Company says it will vigorously defend itself in the matter.
The Company does not believe that any of these matters against it
will, individually or in the aggregate, have a material effect on
its business or financial condition. The Company cannot give
assurance, however, that one or more of these lawsuits will not
have a material effect on its results of operations for the period
in which they are resolved. Based on the information available to
the Company, including the amount of time remaining before trial,
the results of discovery and the judgment of internal and external
counsel, the Company is unable to express an opinion as to the
outcome of these matters and cannot estimate a potential range of
loss.
Dollar Tree, Inc. -- http://www.dollartreestoresinc.com--
operates discount variety stores in the United States and Canada.
Its stores offer merchandise primarily at the fixed price of
$1.00. The Company operates its stores under the names of Dollar
Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills.
The Company was founded in 1986 and is based in Chesapeake,
Virginia.
DOLLAR TREE: Continues to Defend Wage and Hour Suit in Calif.
-------------------------------------------------------------
In April 2011, a former assistant store manager, on behalf of
himself and those similarly situated, instituted a class action in
a California state court primarily alleging a failure by Dollar
Tree, Inc. to provide meal breaks, to compensate for all hours
worked, and to pay overtime compensation. The Company removed the
case to federal court which denied Plaintiffs' motion for remand
of the case to state court. Discovery in this case is at an early
stage. There is no trial date.
No further updates were reported in the Company's August 16, 2012,
Form 10-Q filing with the U.S. Securities and Exchange Commission
for the quarter ended July 28, 2012.
The Company says it will vigorously defend itself in the matter.
The Company does not believe that any of these matters against it
will, individually or in the aggregate, have a material effect on
its business or financial condition. The Company cannot give
assurance, however, that one or more of these lawsuits will not
have a material effect on its results of operations for the period
in which they are resolved. Based on the information available to
the Company, including the amount of time remaining before trial,
the results of discovery and the judgment of internal and external
counsel, the Company is unable to express an opinion as to the
outcome of these matters and cannot estimate a potential range of
loss.
Dollar Tree, Inc. -- http://www.dollartreestoresinc.com--
operates discount variety stores in the United States and Canada.
Its stores offer merchandise primarily at the fixed price of
$1.00. The Company operates its stores under the names of Dollar
Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills.
The Company was founded in 1986 and is based in Chesapeake,
Virginia.
FIRST DATA: Faces Class Action Over Hidden Insurance Fees
---------------------------------------------------------
Linda Chiem, writing for Law360, reports that payment processing
company First Data Corp. was hit with a proposed class action in
New York federal court alleging it fraudulently charged extra fees
and hidden insurance premiums to merchants who leased its credit-
card processing equipment, in violation of insurance statutes.
A group of merchants and small-business owners, including
Clayton's Auto Glass Inc. in Texas and the Linscott Law Firm PLLC
in Idaho, brought the suit on Oct. 5 against First Data and its
subsidiary First Data Merchant Services.
GENON POWER: Judge Dismisses Class Action Over Property Damage
--------------------------------------------------------------
Tribune-Review reports that Springdale residents can't circumvent
the Clean Air Act by filing a property damage lawsuit against the
owner of the Cheswick power station, a federal judge ruled on
Oct. 12 in dismissing the attempted class-action case.
U.S. District Judge Terrence McVerry agreed with Houston-based
GenOn Power Midwest LP that the lawsuit is effectively a back-door
attempt to have him rewrite state and federal air emission
standards.
Kristie Bell and Joan Luppe sued GenOn Power Midwest in April on
behalf of residents living within one mile of the plant who claim
the plant creates a nuisance because particulate matter and white
fly ash lands on their properties and also emits hazardous and
cancer-causing chemicals.
HINES NUT: Recalls Salted Jumbo Virginia In-Shell Peanuts
---------------------------------------------------------
Hines Nut Company Inc. announced a voluntary recall of its SALTED
JUMBO VIRGINIA IN-SHELL PEANUTS. These peanuts were processed in
the Sunland, Inc. Peanut Processing Plant and may be contaminated
with Salmonella. Salmonella is an organism that can cause serious
and sometimes fatal infections in young children, frail or elderly
people, and those with weakened immune systems. Healthy persons
infected with Salmonella often experience fever, diarrhea (which
may be bloody), nausea, vomiting and abdominal pain. In rare
circumstances, infection with Salmonella can result in the
organism getting into the bloodstream and producing more severe
illnesses such as arterial infections (i.e., infected aneurysms),
endocarditis and arthritis.
Specifically, the recall includes SALTED JUMBO VIRGINIA IN-SHELL
PEANUTS which were processed in its Peanut Processing Plant
located in Portales, New Mexico, and which are within their
current shelf life or have no stated expiration date because they
have the possibility of containing Salmonella.
The SALTED JUMBO VIRGINIA IN-SHELL PEANUTS available to retail
customers were distributed under the HINES or Dollar General
Clover Valley label. These were distributed nationally to
numerous large supermarket, grocery and retail chains. The SALTED
JUMBO VIRGINIA IN-SHELL PEANUTS being recalled were distributed
during the six month period prior to the recall date (April 12,
2012 - October 12, 2012), and will have best by/expiration dates
on the packaging from October 12, 2012, through August 27, 2013.
The lot number information can be located on the fourth line of
the "Packing Information' printed in black on the package.
The HINES package is a cello/poly laminated bag, predominately
blue, with a yellow label stating 'SALTED JUMBO VIRGINIA PEANUTS'
packed as 8 oz, 10 oz, 12 oz, 16 oz and 24 oz; Hines also packages
three 'theme' cello/poly laminated bags that are 5.5 oz each. The
themes for these bags are: 1) Independence Day -- red, white and
blue in color with a stylized flag on the front; 2) Football
Season -- with a football on the front; and Hunting Season -- with
a camouflage motif on the front of the bag.
The Dollar General Clover Valley package is a cello/poly laminated
bag, predominately white with red trim and red lettering. These
bags are packaged as 8 oz bags.
The packing information begins with the words 'BEST BUY'. The
recall lot numbers are as follows, located on the fourth line of
the 'BEST BUY' statement:
S03718, S03699, S03724, S03753, S03765, S03784, S03798, S03806,
S03810, S03824, S03826, S03840, S03863, S03886, S03907, S03928,
S03933, S03938, S03950, S03958, S03967, S03972, S03978, S03989,
S03991, S04012, S04025, S04042, S04054, S04066, S04097, S04109,
S04123, S04134, S04141, S04141, S04165, S04200, S04201, S04211,
S04229, S04236, and S04247.
To date, Hines Nut Company, Inc. has not received any complaints
concerning illness on any of these lot numbers. Consumers who
have purchased any of the recalled products are urged not to eat
them and to return products to the place of purchase for a full
refund or dispose of them immediately. The "Best-If-Used-By" date
or product expiration date is printed on the packaging.
Consumers can contact the Company at 1 800-561-6374 for
information regarding this recall. This toll-free number is
operational 24 hours a day.
This recall is being conducted in cooperation with the United
States Food and Drug Administration (FDA). The most current
information available from the FDA is posted at the following Web
site: http://www.fda.gov/Food/FoodSafety
HOLIDAY INN: Class Action Lead Plaintiff Dismissed
--------------------------------------------------
Steve Angeles, writing for ABS-CBN North America News Bureau,
reports that a week after their announcement of a class action
suit against the Holiday Inn Los Angeles Airport, workers staged a
one day strike to protest the firing of two whistleblowers,
including Filipino Nico Quiapos.
Mr. Quiapos is one of the lead plaintiffs in a class action suit
against the franchised hotel.
"First they fired John who's been with the company for 30 years.
Then, they fired me. I've been here for 15 years just for telling
the truth because of the charges that we charged them. Because of
the charges they fired me," said Mr. Quiapos.
Mr. Quiapos said he's had no violations during the 15 years he
worked at the hotel and was not surprised the firings took place a
day after he announced the lawsuit which claims the hotel is
paying its 150 or so employees at least a dollar below the $11.97
living wage ordinance as required by Los Angeles Airport area
hotels.
The class action lawsuit expected to be worth in the millions of
dollars also claims that workers are forced to work unpaid beyond
their scheduled hours, and that some workers are forced to buy
their own cleaning supplies without getting reimbursed.
Hotel management could not be reached for comment in regards to
the firings and ensuing strike, but have denied the allegations
brought on by the class action suit.
Mr. Quiapos said he will continue pushing the class action suit
while he survives on his home-based businesses which include
direct marketing.
INDEPENDENT BANK: Signed Accord to Dismiss Merger-Related Suit
--------------------------------------------------------------
Independent Bank Corp. disclosed in its August 15, 2012, Form 8-K
filing with the U.S. Securities and Exchange Commission that it
entered into a stipulation to dismiss a class action lawsuit filed
in Massachusetts.
On August 14, 2012, Independent Bank Corp. ("Independent") and
Central Bancorp, Inc. ("Central") issued a joint press release
announcing that a Stipulation of Dismissal has been filed by the
parties to a previously-reported lawsuit brought in Superior Court
in Middlesex County, Massachusetts on July 17, 2012. The lawsuit,
which purported to be a class action against Central, each of
Central's directors, and Independent, related to certain alleged
actions by the named defendants in connection with the proposed
merger of Central with and into Independent.
The Stipulation dismisses the lawsuit with prejudice as to the
named plaintiff and provides that the parties will bear their own
attorneys' fees and costs.
About Independent Bank Corp.
Independent Bank Corp., which has Rockland Trust Company as its
wholly-owned commercial bank subsidiary, has approximately $5.0
billion in assets. Rockland Trust offers a wide range of
commercial banking products and services, retail banking products
and services, business and consumer loans, insurance products and
services, and investment management services. To find out why
Rockland Trust is the bank "Where Each Relationship Matters(R)",
visit http://www.RocklandTrust.com/
J. ALEXANDER'S CORP: Awaits Final OK of Deal in Ex-worker's Suit
----------------------------------------------------------------
J. Alexander's Corporation is awaiting final court approval of its
settlement of a class action lawsuit initiated by a former hourly
employee, according to the Company's August 15, 2012, Form 10-Q
filing with the U.S. Securities and Exchange Commission for the
quarter ended July 1, 2012.
In February 2012, the Company agreed to a settlement of a
previously disclosed lawsuit, Dionne Michelle Williams-Green v. J.
Alexander's Restaurants, Inc., pending in the United States
District Court for the Northern District of Illinois. The parties
filed the terms of settlement with the court and received
preliminary approval in June 2012. The settlement is subject to
final court approval. The case was filed by a former hourly
employee of the Company in Illinois and was later certified as a
class action on a claim that the Company's tip share pool in two
restaurants was invalid. During the fourth quarter of 2011, the
Company accrued an estimate of the amount it believes will be
necessary to settle this claim.
J. ALEXANDER'S CORP: Faces Suit Over Proposed Fidelity Merger
-------------------------------------------------------------
J. Alexander's Corporation is facing a shareholder class action
lawsuit filed in connection with its proposed merger with a
subsidiary of Fidelity National Financial, Inc., according to the
Company's August 15, 2012, Form 10-Q filing with the U.S.
Securities and Exchange Commission for the quarter ended July 1,
2012.
On August 10, 2012, Advanced Advisors, a purported shareholder of
the Company, filed a putative class action lawsuit in the
Tennessee Chancery Court for Davidson County, 20th Judicial
District (the "Advanced Advisors Complaint"), against the members
of the Company's board of directors (the "Board"), the Company,
Fidelity National Financial, Inc. ("Fidelity") and New Athena
Merger Sub, Inc. ("Merger Sub"). The Advanced Advisors Complaint
alleges that the members of the Board breached their fiduciary
duties to shareholders in connection with the Company's entry into
an agreement pursuant to which Merger Sub will commence a tender
offer to acquire all of the outstanding shares of the Company's
common stock at a purchase price of $13.00 per share (the
"Offer"). It also alleges that the Board and the Company breached
their fiduciary duties to shareholders by making materially
inadequate disclosures or omissions in the Recommendation
Statement filed by the Company with the SEC in connection with the
Offer ("Recommendation Statement"). The Advanced Advisors
Complaint further alleges that Fidelity aided and abetted the
Board's purported breach of its fiduciary duties. In addition to
seeking compensatory damages and attorneys' fees and expenses, the
Advanced Advisors Complaint seeks to enjoin the sale of the
Company until the Company remedies certain alleged disclosure
deficiencies in its Recommendation Statement. The Company
believes the plaintiff's allegations are without merit, and, if
the plaintiff proceeds with litigation, the Company will contest
the allegations vigorously.
KIT DIGITAL: Wurld Media-Related Suit Still Pending
---------------------------------------------------
A fraudulent conveyance complaint against KIT digital, Inc.
relating to its transactions with Wurld Media, Inc., remains
pending, according to the Company's August 14, 2012, Form 10-Q
filing with the U.S. Securities and Exchange Commission for the
quarter ended June 30, 2012.
In November 2007, the Company's wholly owned subsidiary, ROO HD,
Inc., now KIT HD, Inc., was named as the defendant in a purported
class action lawsuit entitled Julie Vittengl et al. vs. ROO HD,
Inc., in New York Supreme Court, Saratoga County, New York. The
suit, brought by four former employees of Wurld Media, Inc.,
purportedly on behalf of themselves and "others similarly
situated," claims that KIT HD's acquisition of certain assets of
Wurld was a fraudulent conveyance and that KIT HD is the alter-ego
of Wurld. Plaintiffs seek the appointment of a receiver to take
charge of the Company's property in constructive trust for
plaintiffs and payment of plaintiffs' unpaid wages and costs of
suit, both in an unspecified dollar amount. KIT HD filed its
answer to the complaint in January 2008. In December 2009,
plaintiffs served an amended complaint, dropping the class action
allegations and joined by 15 additional former employees of Wurld,
added the Company as a defendant and purport to seek to enforce
judgments plaintiffs had obtained against Wurld as the result of
an arbitration against Wurld in March 2009. In February 2010, the
Company and KIT HD answered the amended complaint, and the case is
currently in discovery. The Company believes the suit is without
merit, and intends to defend it vigorously.
New York-based KIT digital, Inc. is a premium provider of end-to-
end video management software and services. Its KIT Video
Platform, a cloud-based video asset management system, enables
clients in the enterprise, media and entertainment and network
operator markets to produce, manage and deliver multiscreen social
video experiences to audiences wherever they are. The Company
services approximately 2,450 clients in more than 50 countries
including some of the world's biggest brands such as Airbus, AT&T,
The Associated Press, BBC, Best Buy, Bristol-Myers Squibb, BSkyB,
Disney-ABC, FedEx, Google, HP, MTV, News Corp, Telecom Argentina,
Telefonica, Universal Studios, Verizon, Vodafone and Volkswagen.
KIT DIGITAL: Continues to Defend Securities Suit in New York
------------------------------------------------------------
KIT digital, Inc., continues to defend itself against a securities
lawsuit in New York, according to the Company's August 14, 2012,
Form 10-Q filing with the U.S. Securities and Exchange Commission
for the quarter ended June 30, 2012.
On May 29, 2012, McHardy, a shareholder, filed a purported
securities class action complaint against the Company and certain
former executive officers alleging claims under Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder in connection with purchases of the Company's common
stock between November 8, 2011 and May 3, 2012. The complaint
alleges, among other things, that certain prior statements
regarding the Company's past and expected future results of
operations were false and misleading.
The Company believes this lawsuit is without merit and intends to
defend itself vigorously.
New York-based KIT digital, Inc. is a premium provider of end-to-
end video management software and services. Its KIT Video
Platform, a cloud-based video asset management system, enables
clients in the enterprise, media and entertainment and network
operator markets to produce, manage and deliver multiscreen social
video experiences to audiences wherever they are. The Company
services approximately 2,450 clients in more than 50 countries
including some of the world's biggest brands such as Airbus, AT&T,
The Associated Press, BBC, Best Buy, Bristol-Myers Squibb, BSkyB,
Disney-ABC, FedEx, Google, HP, MTV, News Corp, Telecom Argentina,
Telefonica, Universal Studios, Verizon, Vodafone and Volkswagen.
KNOWLEDGE HOUSE: Former Shareholders Mull Class Action
------------------------------------------------------
Herald Business reports that former Knowledge House Inc.
shareholders have hired a Halifax law firm to investigate a
potential class action aimed at recouping the money they lost when
the e-learning company collapsed in 2001.
Arnold Pizzo McKiggan wants to hear from investors who lost money
when the Knowledge House shares became worthless.
"We believe from our investigation and the research we have done
that there is appropriate grounds to pursue this as a class
action," lawyer John McKiggan said on Oct. 12.
In March 2000, Knowledge House's market capitalization was more
than $111 million, according to Mr. McKiggan's firm. But by
September of the following year, they'd stopped trading and became
worthless.
"There's no point in pursuing a claim like this unless its in the
tens of millions of dollars," Mr. McKiggan said.
His firm plans to file papers required to start a class action in
Nova Scotia Supreme Court by the end of the month.
"There were hundreds of investors, primarily from Nova Scotia.
Some of them were wealthy individuals who were able to afford
these losses, but many of them were not," Mr. McKiggan said.
"To them these losses were a significant blow. So I think it's
only fair and reasonable that they at least have the opportunity
to try to recover their losses."
Earlier this month, the Nova Scotia Securities Commission's stock
manipulation case against Knowledge House insiders Kenneth MacLeod
and Calvin Wadden screeched to a halt. That came after a secret
deal in the Knowledge House case came to light that was made seven
years ago between commission staff, National Bank Financial Ltd.
and Eric Hicks, the firm's Halifax branch manager.
"It does seem that there's new information available that leads
one to suspect that the collapse of Knowledge House may not have
been due to market forces, but due to other factors," Mr. McKiggan
said, refusing to elaborate.
Mr. McKiggan wouldn't say on Oct. 12 who his group of investors
intends to sue.
"All I'm going to say at this point is when you file a claim of
this size and this complexity, you want to be sure that the
potential defendant has the resources to pay," he said.
A lot of Knowledge House investors bought their shares on margin,
Mr. McKiggan said.
"It appears that National Bank was, if not the only bank selling
on margin, they were, by far, the most aggressive in their margin
sales," he said.
The collapse of Knowledge House has prompted multiple legal
battles.
Last year, the RCMP laid criminal charges related to the Knowledge
House failure against the company's former chief executive officer
Dan Potter, former company lawyer R. Blois Colpitts and ex-
stockbroker Bruce E. Clarke.
LAO CHAREUNE: Recalls 8,200 Pounds of Beef and Pork Products
------------------------------------------------------------
Lao Chareune Foods, a Dallas, Texas establishment, is recalling
approximately 8,200 pounds of various beef and pork products
because they were produced without the benefit of federal
inspection and misbranded, the U.S. Department of Agriculture's
Food Safety and Inspection Service (FSIS) announced.
The following products are subject to recall:
* 3-oz. and 8-oz. packages containing "Pork Snack Stick"
* 3.20-oz. packages containing "Seasoned Fried Beef"
* 1.76-oz. packages containing "Fried Pork Skins"
* 1.20-oz. packages containing "Sliced Fried Pork Ears."
Each package bears the establishment number "EST. 13479" inside
the USDA mark of inspection. There are no production or
expiration dates on the products in commerce. The pork snack
stick is also misbranded in that it is raw and as such cannot be
labeled as a snack stick. FSIS has determined that the products
were produced from May 22, 2012, to the present and distributed to
retail establishments in Louisiana and Texas.
The problem was discovered by FSIS enforcement personnel who
identified the products in commerce labeled with the USDA mark of
inspection and determined that they were produced without the
benefit of inspection. Pictures of the recalled products are
available at: http://is.gd/KXwaHs
FSIS has received no reports of illness due to consumption of
these products. Anyone concerned about an illness should contact
a health care provider.
FSIS routinely conducts recall effectiveness checks to verify
recalling firms notify their customers of the recall and that
steps are taken to make certain that recalled product is no longer
available to consumers. If available, the retail distribution
list(s) will be posted on the FSIS Web site at:
http://www.fsis.usda.gov/FSIS_Recalls/Open_Federal_Cases/index.asp
Consumer and media questions regarding the recall can contact the
company's owner, Charlie Souriyavong, at (214) 330-5995.
Consumers with food safety questions can "Ask Karen," the FSIS
virtual representative available 24 hours a day at
www.AskKaren.gov. "Ask Karen" live chat services are available
Monday through Friday from 10:00 a.m. to 4:00 p.m. Eastern Time.
The toll-free USDA Meat and Poultry Hotline 1-888-MPHotline (1-
888-674-6854) is available in English and Spanish and can be
reached from 10:00 a.m. to 4:00 p.m. Eastern Time Monday through
Friday. Recorded food safety messages are available 24 hours a
day.
LIVEDEAL INC: To Seek Approval of Deal in Consumer Suit in Wash.
----------------------------------------------------------------
LiveDeal, Inc. will seek approval of a settlement of a consumer
lawsuit commenced by Global Education Services, Inc., once
settlement documents are completed, according to the Company's
August 14, 2012 Form 10-Q filing with the U.S. Securities and
Exchange Commission for the quarter ended June 30, 2012.
On June 6, 2008, Global Education Services, Inc. (GES) filed a
consumer fraud class action lawsuit against the Company in King
County (Washington) Superior Court alleging that the Company's use
of activator checks violated the Washington Consumer Protection
Act. GES sought injunctive relief against the Company's use of
activator checks, as well as damages in an amount equal to three
times the damages allegedly sustained by the putative members of
the class. LiveDeal denied the allegations and defended the
litigation. The parties reached a tentative settlement in the
third quarter of fiscal 2012 and expects to file motions with the
court jointly with the class representative and class counsel for
preliminary and final approval once the settlement documents have
been completed. The Company accrued $150,000 in the third quarter
of fiscal 2012 in conjunction with this tentative settlement which
is reflected as part of other income (expense) in the accompanying
unaudited interim condensed consolidated statements of operations.
MACY'S INC: Reaches Class Settlement in Ohio ERISA Lawsuit
----------------------------------------------------------
Macy's Inc. has negotiated a settlement, subject to court
approval, resolving an ERISA class action complaint in Ohio,
according to the Company's September 4, 2012, Form 10-Q filing
with the U.S. Securities and Exchange Commission for the quarter
ended July 28, 2012.
On October 3, 2007, Ebrahim Shanehchian, an alleged participant in
the Macy's, Inc. Profit Sharing 401(k) Investment Plan (now known
as the Macy's, Inc. 401(k) Retirement Investment Plan), filed a
lawsuit in the United States District Court for the Southern
District of Ohio on behalf of persons who participated in the
401(k) Plan and The May Department Stores Company Profit Sharing
Plan (the "May Plan") between February 27, 2005 and the present.
The lawsuit has been conditionally certified as a class action.
The complaint alleges that the Company, as well as members of the
Company's board of directors and certain members of senior
management, breached various fiduciary duties owed under the
Employee Retirement Income Security Act ("ERISA") to participants
in the 401(k) Plan and the May Plan, by making false and
misleading statements regarding the Company's business, operations
and prospects in relation to the integration of the acquired May
operations, resulting in supposed "artificial inflation" of the
Company's stock price and "imprudent investment" by the 401(k)
Plan and the May Plan in Macy's stock. The plaintiff seeks an
unspecified amount of compensatory damages and costs. The parties
have reached an agreement to settle the matter, subject to court
approval of the settlement terms.
Macy's, Inc. and subsidiaries is an omnichannel retail
organization operating stores and websites under two brands
(Macy's and Bloomingdale's) that sell a wide range of merchandise,
including apparel and accessories (men's, women's and children's),
cosmetics, home furnishings and other consumer goods. The
Company's operations include approximately 850 stores in 45
states, the District of Columbia, Guam and Puerto Rico, as well as
macys.com and bloomingdales.com.
MARVELL TECHNOLOGY: Gets Final OK on Wage and Hour Class Deal
-------------------------------------------------------------
Marvell Technology Group Ltd. won final court approval of a class
settlement resolving a wage and hour class action, according to
the Company's September 4, 2012, Form 10-Q filing with the U.S.
Securities and Exchange Commission for the quarter ended July 28,
2012.
On October 18, 2006, Dan Holton, a former employee of Marvell
Semiconductor, Inc. (MSI), filed a civil complaint in Santa Clara
County Superior Court. Mr. Holton alleges that MSI misclassified
him as an exempt employee. Mr. Holton claims that due to its
misclassification MSI owes him unpaid wages for overtime,
penalties for missed meal periods, and various other penalties
under the California Labor Code, as well as interest. Mr. Holton
also pursues a cause of action for unfair business practices under
the California Business & Profession Code. Mr. Holton brought his
complaint as a class action. On July 8, 2009, the court granted
certification of the following class: "All Individual Contributor
Engineers who held the title of PCB Designer, Associate Engineer,
Engineer, Staff Engineer and Senior Engineers, who at any time
during the class period while holding these positions did not have
a degree above a baccalaureate degree nor a degree above a
baccalaureate degree in a field of science related to the work
performed, and worked for MSI in California, at any time from
October 19, 2002 through the present." MSI disputed all of
plaintiff's class claims. On November 23, 2011, the parties
executed a settlement agreement and plaintiffs filed their motion
for preliminary approval of the settlement. The settlement was
preliminarily approved by the Court on March 16, 2012. No class
members objected to the settlement, and the Court approved the
settlement at the final settlement approval hearing on July 6,
2012. The settlement amount, which was recorded in the Company's
financial statements in fiscal 2012, was not material to the
Company's results of operations.
Marvell Technology Group Ltd., a Bermuda company, is a global
semiconductor provider of high performance application specific
standard products.
MONDELEZ GLOBAL: Recalls Green & Black's Organic Chocolate Bar
--------------------------------------------------------------
Mondelez Global LLC announced a voluntary recall in the United
States of the Green & Black's Organic Peanut & Sea Salt Milk
Chocolate Bar. This product contains peanuts supplied by Sunland,
Inc., which expanded its nationwide recall on October 12, 2012.
The peanuts have the potential to be contaminated with Salmonella,
which can cause serious and sometimes fatal infections in young
children, frail or elderly people, and others with weakened immune
systems. Healthy persons infected with Salmonella often
experience fever, diarrhea (which may be bloody), nausea, vomiting
and abdominal pain. In rare circumstances, infection with
Salmonella can result in the organism getting into the bloodstream
and producing more severe illnesses such as arterial infections
(i.e., infected aneurysms), endocarditis and arthritis.
This recall is limited exclusively to the Green & Black's Organic
Peanut and Sea Salt Milk Chocolate Bar (UPC 708656100562, 3.5 oz.
bar, all "best by" dates) manufactured and sold only in the United
States, available at retail and specialty stores nationwide. No
other Green & Black's product is included in this recall. A
picture of the recalled products' label is available at:
http://www.fda.gov/Safety/Recalls/ucm324044.htm
Consumers who have this product should not eat it, and should
discard any products they may have. Consumers can contact the
company at 1-855-268-7808 24 hours a day to get more information
about the recall, and Consumer Relations specialists are available
Monday - Friday, 9:00 a.m. to 6:00 p.m. Eastern Standard Time.
There have been no complaints of illness reported to Mondelez
Global to date in connection with this product and the company is
issuing this recall as a precaution.
MUNICIPAL MORTGAGE: Md. Court Junks Wrongdoing Charges in Lawsuit
-----------------------------------------------------------------
A Maryland court has dismissed charges of intentional wrongdoing
in a class action against Municipal Mortgage & Equity, LLC,
according to the Company's August 14, 2012, Form 10-Q filing with
the U.S. Securities and Exchange Commission for the quarter ended
June 30, 2012.
The Company is a defendant in a purported class action lawsuit and
two derivative suits originally filed in 2008. The plaintiffs in
the class action lawsuit claim to represent a class of investors
in the Company?s shares who allegedly were injured by
misstatements in press releases and SEC filings between May 3,
2004, and January 28, 2008. The plaintiffs seek unspecified
damages for themselves and the shareholders of the class they
purport to represent. In the derivative suits, the plaintiffs
claim, among other things, that the Company was injured because
its directors and certain named officers did not fulfill duties
regarding the accuracy of its financial disclosures. Both the
class action and the derivative cases are pending in the United
States District Court for the District of Maryland.
The Company filed a motion to dismiss the class action and in June
2012, the Court issued a ruling dismissing all of the counts
alleging any knowing or intentional wrongdoing by the Company or
its affiliates, directors and officers. The only remaining counts
relate to the Company's dividend reinvestment plan.
As of June 30, 2012, the Company believes it is probable that it
will settle this case for at least $0.5 million and has recorded a
contingent obligation for this amount (reported through other
liabilities) with a corresponding loss recognized through other
expenses. If the plaintiffs are successful on appeal, then it is
possible that the Company could incur additional losses, which
could be significant; however, these losses cannot be estimated at
this time. The Company expects any settlement and any other
future losses related to this case (including the $0.5 million,
mentioned above) to be covered by insurance proceeds.
Municipal Mortgage & Equity, LLC's primary business is its
investments in tax-exempt and taxable bonds secured predominantly
by affordable multifamily housing properties. The Company is
based in Baltimore, Maryland.
NEW ENGLAND: Faces Class Action Over Injectable Steriod
--------------------------------------------------------
Courthouse News Service reports that in a federal class action, a
woman claims she is one of 41 people in Michigan who contracted
fungal meningitis from an injectable steroid produced by New
England Compounding Pharmacy, of Framingham, Mass.
OVERHILL FARMS: Calif. Court Denies Certification of Wages Suit
---------------------------------------------------------------
A California court refused to certify a wage-and-hour case as a
class action against Overhill Farms Inc. in June, according to the
Company's August 14, 2012, Form 10-Q filing with the U.S.
Securities and Exchange Commission for the quarter ended July 1,
2012. The remaining plaintiffs may still pursue their claims
under individual actions.
On July 1, 2009, Bohemia Agustiana, Isela Hernandez, and Ana Munoz
filed a purported class action against the Company in which they
asserted claims for failure to pay minimum wage, failure to
furnish wage and hour statements, waiting time penalties,
conversion and unfair business practices. The plaintiffs are
former employees who had been terminated one month earlier because
they had used invalid social security numbers in connection with
their employment with the Company. They filed the case in Los
Angeles County on behalf of themselves and a class which they say
includes all non-exempt production and quality control workers who
were employed in California during the four-year period prior to
filing their complaint. The plaintiffs seek unspecified damages,
restitution, injunctive relief, attorneys' fees and costs.
The Company filed a motion to dismiss the conversion claim, and
the motion was granted by the court on February 2, 2010.
On May 12, 2010, Alma Salinas filed a separate purported class
action in Los Angeles County Superior Court against the Company in
which she asserted claims on behalf of herself and all other
similarly situated current and former production workers for
failure to provide meal periods, failure to provide rest periods,
failure to pay minimum wage, failure to make payments within the
required time, unfair business practice in violation of Section
17200 of the California Business and Professions Code and Labor
Code Section 2698 (known as the Private Attorney General Act
(PAGA)). Ms. Salinas is a former employee who had been terminated
because she had used an invalid social security number in
connection with her employment with the Company. Ms. Salinas
sought allegedly unpaid wages, waiting time penalties, PAGA
penalties, interest and attorneys' fees, the amounts of which are
unspecified. The Salinas action has been consolidated with the
Agustiana action. The plaintiffs thereafter dropped their rest
break and PAGA claims when they filed a consolidated amended
complaint.
In about September 2011, plaintiffs Agustiana and Salinas agreed
to voluntarily dismiss and waive all of their claims against the
Company. They also agreed to abandon their allegations that they
could represent any other employees in the alleged class. The
Company did not pay them any additional wages or money.
The remaining plaintiff added four former employees of the Company
as additional plaintiffs. Three of the four new plaintiffs are
former employees that the Company terminated one month before this
case was filed because they had used invalid social security
numbers in connection with their employment with the Company. The
fourth new plaintiff has not worked for the Company since February
2007.
On June 26, 2012, the court denied the plaintiffs' motion to
certify the case as a class action. The five remaining plaintiffs
can pursue their individual wage claims against the Company, but
the court has ruled that they cannot assert those claims on behalf
of the class of current and former production employees they
sought to represent. The Company believes it has valid defenses
to the plaintiffs' remaining claims, and that the Company paid all
wages due to these employees.
Overhill Farms, Inc. is a value-added manufacturer of high
quality, prepared frozen food products for branded retail, private
label, foodservice and airline customers. The Company's product
line includes entr‚es, plated meals, bulk-packed meal components,
pastas, soups, sauces, poultry, meat and fish specialties, and
organic and vegetarian offerings.
PANDORA MEDIA: Plea to Dismiss Personal Info Suit Still Pending
---------------------------------------------------------------
Pandora Media, Inc.'s motion to dismiss a class lawsuit over
unlawful transmission of personal information through an Android
mobile application remains pending, according to the Company's
September 4, 2012, Form 10-Q filing with the U.S. Securities and
Exchange Commission for the quarter ended July 31, 2012.
In June 2011, a putative class action lawsuit was filed against
Pandora in the United States District Court for the Northern
District of California alleging that it unlawfully accessed and
transmitted personally identifiable information of the plaintiffs
in connection with their use of the Company's Android mobile
application. In addition to civil liability, the amended
complaint includes allegations of violations of statutes under
which criminal penalties could be imposed if the Company were
found liable. Pandora's motion to dismiss the first amended
complaint was filed on March 23, 2012. No hearing date is
currently set.
Pandora Media, Inc. provides an internet radio service in the
United States. It has developed a form of radio that uses
intrinsic qualities of music to initially create stations that
then adapt playlists in real-time based on the individual feedback
of each listener.
PANDORA MEDIA: Plea to Dismiss Suit Over Video Rental Law Pending
-----------------------------------------------------------------
Pandora Media, Inc.'s motion to dismiss a consumer class complaint
over alleged Michigan video rental privacy law violations, remains
pending, according to the Company's September 4, 2012, Form 10-Q
filing with the U.S. Securities and Exchange Commission for the
quarter ended July 31, 2012.
In September 2011, a putative class action lawsuit was filed
against Pandora in the United States District Court for the
Northern District of California alleging that it violated
Michigan's video rental privacy law and consumer protection
statute by allowing Pandora listeners' listening history to be
visible to the public. Pandora's motion to dismiss the complaint
was filed on November 28, 2011. No hearing date is currently set.
Pandora Media, Inc. provides an internet radio service in the
United States. It has developed a form of radio that uses
intrinsic qualities of music to initially create stations that
then adapt playlists in real-time based on the individual feedback
of each listener.
PENSON WORLDWIDE: Bid to Dismiss "Friedman" Suit Pending in Texas
-----------------------------------------------------------------
Penson Worldwide, Inc. continues to await a court ruling on its
motion to dismiss a securities class action complaint filed by
Reid Friedman in Texas, according to the Company's August 14, 2012
Form 10-Q filing with the U.S. Securities and Exchange Commission
for the quarter ended June 30, 2012.
On August 23, 2011, a class action complaint alleging violations
of the federal securities laws was filed in the United States
District Court for the Northern District of Texas against the
Company and its Chief Executive Officer and Chief Financial
Officer, Philip A. Pendergraft and Kevin W. McAleer, by Reid
Friedman, on behalf of himself and all others similarly situated.
Plaintiff contended, among other things, that Penson concealed
from investors that by at least the end of 2010, (1) that the
Company had approximately $96 million to $97 million in
receivables of which approximately $43 million were collateralized
by illiquid securities and therefore unlikely to be collected; (2)
the Company's assets (Nonaccrual Receivables) were materially
overstated and should have been written down at least by the end
of 2010; (3) as a result, the Company's reported income and EBITDA
(earnings before interest, taxes, depreciation, amortization and
stock-based compensation, and excluding certain non-operating
expenses) were materially overstated; and (4) the Company's
financial statements were not prepared in accordance with
generally accepted accounting principles. In March 2012,
Plaintiff filed an Amended Complaint alleging a class period
between March 30, 2007 and August 4, 2011, inclusive, adding
allegations, among others, that certain transactions should have
been disclosed as related party transactions, and adding Daniel P.
Son, Roger Engemoen, Jr., Thomas R. Johnson, and BDO Seidman, LLP
and BDO USA, LLP as additional parties. These events have led to
increased regulatory scrutiny of the Company's operations and
margin lending. Plaintiff seeks to recover an unspecified amount
of damages, including interest, attorneys' fees, costs, and
equitable/injunctive relief as the Court may deem proper. The
Company filed a Motion to Dismiss and intends to vigorously defend
itself against these claims.
Penson Worldwide, Inc. is a holding company incorporated in
Delaware, which conducts business through its wholly owned
subsidiary SAI Holdings, Inc. Through its operating subsidiaries,
the Company provides securities and futures clearing services
including integrated trade execution, foreign exchange trading,
custody services, trade settlement, technology services, risk
management services, customer account processing and customized
data processing services. The Company also participates in margin
lending and securities lending and borrowing transactions,
primarily to facilitate clearing and financing activities.
PERRIGO CO: Hearing on Cert. Bid in Eltroxin Suit on Feb. 2013
--------------------------------------------------------------
Perrigo Company said in its August 16, 2012, Form 10-K filing with
the U.S. Securities and Exchange Commission for the year ended
June 30, 2012, that the hearing on whether or not the court will
certify a consolidated lawsuit related to Eltroxin as a class
action is scheduled for February 2013.
During October and November 2011, nine applications to certify a
class action lawsuit were filed in various courts in Israel
related to Eltroxin, a prescription thyroid medication
manufactured by Aspen and distributed by the Company in Israel.
The respondents include Perrigo Israel Pharmaceuticals Ltd. and/or
Perrigo Israel Agencies Ltd., GlaxoSmithKline (Israel) Ltd, and
health care providers who provide health care services as part of
the compulsory health care system in Israel. There is also a
motion to approve a service on Aspen Bad Oldesloe GMBH, Germany,
of one of the applications.
The applications arise from the launch of a reformulated version
of Eltroxin in Israel. The applications generally allege that
patients were not notified in a timely manner about the change in
the formulation, about the potential for adverse events while
transferring to the new formulation of Eltroxin and the need to
perform blood tests after changing to the new formulation. The
applications also generally allege that the failure to timely
provide such notifications resulted in: (a) purchases of product
that otherwise would not have been made by patients had they been
aware of the reformulation; (b) injuries to some patients
resulting from an imbalance of thyroid functions that could have
been avoided; and (c) harm resulting from the patient's lack of
informed consent prior to the use of the reformulation.
All nine applications were transferred to one court. On July 19,
2012, the court subsequently dismissed one of the applications and
ordered that the remaining eight applications be consolidated into
one application. The hearing on whether or not to certify the
consolidated application is scheduled for February 2013. As this
matter is in its early stages, the Company cannot reasonably
predict at this time the outcome or the liability, if any,
associated with these claims.
Perrigo Company is a healthcare supplier that develops,
manufactures and distributes over-the-counter (OTC) and generic
prescription (Rx) pharmaceuticals, infant formulas, nutritional
products and active pharmaceutical ingredients (API). The
Company's primary markets and locations of manufacturing and
logistics operations are the United States, Israel, Mexico, the
United Kingdom and Australia. The Company is headquartered in
Allegan, Michigan.
PERRIGO CO: Agrees to Settle Shareholder Class Suit in New York
---------------------------------------------------------------
Perrigo Company entered into an agreement in principle to settle a
shareholder class action lawsuit brought in New York, according to
the Company's August 16, 2012, Form 10-K filing with the U.S.
Securities and Exchange Commission for the year ended June 30,
2012.
On March 11, 2009, a purported shareholder of the Company named
Michael L. Warner ("Warner") filed a lawsuit in the United States
District Court for the Southern District of New York against the
Company and certain of its officers and directors, including the
President and Chief Executive Officer, Joseph Papa, and the Chief
Financial Officer, Judy Brown, among others. The plaintiff sought
to represent a class of purchasers of the Company's common stock
during the period between November 6, 2008, and February 2, 2009.
The complaint alleged violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 (the Exchange Act). The
plaintiff generally alleged that the Company misled investors by
failing to disclose, prior to February 3, 2009, that certain
auction rate securities held by the Company, totaling
approximately $18 million in par value ("the ARS"), had been
purchased from Lehman Brothers Holdings, Inc. ("Lehman"). The
plaintiff asserted that omission of the identity of Lehman as the
seller of the ARS was material because after Lehman's bankruptcy
filing, on September 15, 2008, the Company allegedly became unable
to look to Lehman to repurchase the ARS at a price near par value.
The complaint sought unspecified damages and unspecified equitable
or injunctive relief, along with costs and attorneys' fees.
On June 15, 2009, the Court appointed several other purported
shareholders of the Company, rather than Warner, as co-lead
plaintiffs (the "Original Co-Lead Plaintiffs"). On July 31, 2009,
these Original Co-Lead Plaintiffs filed an amended complaint. The
amended complaint dropped all claims against the individual
defendants other than Joseph Papa and Judy Brown, and added a
"control person" claim under Section 20(a) of the Exchange Act
against the members of the Company's Audit Committee. The amended
complaint asserted many of the same claims and allegations as the
original pleading. It also alleged that the Company should have
disclosed, prior to February 3, 2009, that Lehman had provided the
allegedly inflated valuation of the ARS that the Company adopted
in its Form 10-Q filing for the first quarter of fiscal 2009,
which was filed with the SEC on November 6, 2008. The amended
complaint also alleged that some portion of the write-down of the
value of the ARS that the Company recognized in the second quarter
of fiscal 2009 should have been taken in the prior quarter,
immediately following Lehman's bankruptcy filing.
On September 28, 2009, the defendants filed a motion to dismiss
all claims against all defendants. On September 30, 2010, the
Court granted in part and denied in part the motion to dismiss.
The Court dismissed the "control person" claims against the
members of the Company's Audit Committee, but denied the motion to
dismiss as to the remaining claims and defendants. On
October 29, 2010, the defendants filed a new motion to dismiss the
amended complaint on the grounds that the Original Co-Lead
Plaintiffs (who were the only plaintiffs named in the amended
complaint) lacked standing to sue under the U.S. securities laws
following a recent decision of the United States Supreme Court
holding that Section 10(b) of the Exchange Act does not apply
extraterritorially to the claims of foreign investors who
purchased or sold securities on foreign stock exchanges. On
December 23, 2010, a purported shareholder named Harel Insurance,
Ltd. ("Harel") filed a motion to intervene as an additional named
plaintiff. On January 10, 2011, the original plaintiff, Warner,
filed a motion renewing his previously withdrawn motion to be
appointed as Lead Plaintiff to replace the Original Co-Lead
Plaintiffs.
On September 28, 2011, the Court granted defendants' renewed
motion to dismiss. The Court (i) dismissed the claims of the
Original Co-Lead Plaintiffs; (ii) ruled that any class that might
ultimately be certified could only consist of persons who
purchased their Perrigo shares on the NASDAQ market or by other
means involving transactions in the United States; (iii) granted
Harel's motion to intervene as a named plaintiff; and (iv) ruled
that Warner would also be treated as a named plaintiff.
On October 7, 2011, plaintiffs filed a second amended complaint on
behalf of both Harel and Warner, alleging the same claims as in
the amended complaint but on behalf of a purported class limited
to those who purchased Perrigo stock on the NASDAQ market or by
other means involving transactions in the United States. On
October 27, 2011, the Court approved a stipulation appointing
Harel and Warner as co-lead plaintiffs (the "Co-Lead Plaintiffs").
On November 21, 2011, the defendants answered the second amended
complaint, denying all allegations of wrongdoing and asserting
numerous defenses. Although the Company believes that it has
meritorious defenses to this lawsuit, the Company has engaged in
settlement discussions with counsel for the Co-Lead Plaintiffs in
an effort to move the matter to a quicker resolution and avoid the
costs and distractions of protracted litigation. As a result of
these discussions, the Company and the Co-Lead Plaintiffs have
reached an agreement in principle to settle the case and have
executed a Memorandum of Settlement outlining the essential terms
of the proposed settlement. The settlement would be subject to
Court approval. In order to finalize the settlement, the parties
will be required to engage in a process involving a number of
additional steps, including the drafting of a detailed Stipulation
of Settlement and the filing of a motion asking the Court to
approve the settlement after providing notice and the opportunity
to be heard to the members of the proposed settlement class.
The Company says there can be no assurance that a final settlement
will be reached or approved by the Court. Regardless of whether
the proposed settlement is finalized and approved, the Company
believes the resolution of this matter will not have a material
adverse effect on its financial condition and results of
operations as reported in the accompanying consolidated financial
statements.
Perrigo Company is a healthcare supplier that develops,
manufactures and distributes over-the-counter (OTC) and generic
prescription (Rx) pharmaceuticals, infant formulas, nutritional
products and active pharmaceutical ingredients (API). The
Company's primary markets and locations of manufacturing and
logistics operations are the United States, Israel, Mexico, the
United Kingdom and Australia. The Company is headquartered in
Allegan, Michigan.
PETERBOROUGH HOSPITAL: Patients Mull Privacy Breach Class Action
----------------------------------------------------------------
Sarah Frank, writing for myKwartha.com, reports that if all goes
as lawyers plan, the issue of breached patient files at
Peterborough hospital could go to court within a year.
At an Oct. 11 meeting, approximately 60 community members
concerned over the breaches, discussed pursuing a class action
lawsuit with two Ottawa lawyers.
The meeting comes after approximately 280 patients received
letters early this year, notifying them their medical files were
breached by hospital staff.
Seven staff members were fired after the hospital's privacy
department conducted an audit.
Michael Crystal, of Crystal Cyr Barristers, has enlisted the help
of Arthur Cogan, Q.C., who he considers one of the best lawyers in
the country.
Mr. Cogan, who will act as the lead counsel for the case, was the
first to argue a class-action suit in Ontario. He won the case.
"He's my co-counsel and my mentor on this," says Mr. Crystal,
adding both lawyers firmly believe residents who've had their
records breached have been wronged.
"I know there's people out there thinking that some of the people
are just trying to cash in on these breaches," he says. "But it's
not about the cash. We're not talking about millions of dollars
here."
According to Mr. Crystal, case law suggests community members are
looking at awards of $10,000 to $20,000 per person, although
nothing is certain.
Patient medical records are protected under the Personal Health
and Information Protection Act.
Mr. Crystal says when the Act was legislated, lawmakers equated
the sanctity of medical records to a person's dignity.
"These people do feel that their dignity has basically been
infringed," he says. "There are people who have to apply for jobs
and get on the bus . . . The idea that an employee could know that
you have a disorder, or have sought psychiatric treatment, or have
a sexually transmitted disease, anything, is a great concern."
Mr. Crystal says he and Mr. Cogan are moving for certification of
the case next month, and if it's given by the court, will start
the lawsuit before December. Depending on the Superior Court
schedule in Peterborough, the issue would most likely go to trial
in six to 12 months, says Mr. Crystal.
Those who've had their records breached and don't wish to
participate in the lawsuit will have the opportunity to opt out.
They're also welcome to bring their own lawsuit to court, says
Mr. Crystal, but fighting the breach alone is much more difficult.
Mr. Crystal invites anyone with information on when or how medical
information gleaned from the breached files was spread, to come
forward.
"We are very interested in anything any member of the public has
overheard or seen concerning one of the wrongdoers spreading the
information," he says.
POLY IMPLANTS: Ruptured Breast Implants Have Long-Term Effects
--------------------------------------------------------------
Herald Sun reports that Sydney mother, Bronwyn Pereira, who had
ruptured implants removed, has warned young women not to have the
cosmetic surgery.
The 46-year-old of Mona Vale said she suffers persistent
headaches, nausea and chronic fatigue after silicon leaking from
her implants spread into her lymph nodes.
She is just one of more than 1000 women who have joined a class
action lawsuit against the French-based company Poly Implant
Prothese (PIP), which has been linked to scandals across the
world.
Authorities have recorded 429 ruptures here.
The Australian Society of Plastic Surgeons has recently agreed to
set up a register recording every breast implant used so
authorities can track any future problems.
Mrs. Pereira said she has been forced to close down her
housekeeping business and now relies on Centrelink payments and a
bank overdraft to pay the mortgage.
Despite her pain, Mrs. Pereira's main concern is for her 17-year-
old daughter and others like her who may consider implants in the
future.
Mrs. Pereira decided to have the implants because of a medical
condition and trusted her surgeon completely when he decided on
the PIP implants.
"Do your research, we, especially the youth of today, have got so
complacent with accepting procedures but you must really look into
what is being done to your body," she said.
"I really believed once I had the implant removed it would be
better but since then there has been one problem after the other.
"They (the TGA) says there are no signs of excess toxicity in the
implants yet they admit they cannot identify 100 per cent of what
is in them.
"Mine was orange in colour when they removed it."
Mrs. Pereira, who only discovered her implant was ruptured when
she had an unrelated X-ray on her back, has joined the class
action through South Australian law firm Tindall Gask Bentley.
The Therapeutic Goods Administration has remained defiant, stating
there is no evidence the PIP implants are more likely than other
implants to rupture despite international studies to the contrary.
The Federal Government is offering Medicare-funded MRIs to women
with the implants to check for ruptures.
And women can have them removed through the public hospital system
"when medically necessary".
But that is of no help to Mrs. Pereira, who has no way of knowing
when, or if, her pain will ever relent.
Approximately 13,000 PIP silicone gel breast implants were
supplied in Australia between 1998 and 2010.
PORTFOLIO RECOVERY: 9th Cir. Upholds TCPA Class Certification
-------------------------------------------------------------
Gavin Broady, writing for Law360, reports that the Ninth Circuit
on Oct. 12 upheld the provisional certification of a class action
accusing debt collection agency Portfolio Recovery Associates LLC
of violating the Telephone Consumer Protection Act by using an
automated system to call debtors' cellphones without their
consent.
The appeals court rejected PRA's argument that a California
federal judge who initially filed a minute order indicating
certification would be denied -- but later issued a written order
granting certification -- lacked the authority to issue the latter
order.
QWEST COMMS: Discussions in Fiber-Optic Cable Suits Still Ongoing
-----------------------------------------------------------------
Qwest Communications International Inc. continues to negotiate
settlements with plaintiffs in putative class actions related to
the installation of fiber-optic cable in certain rights-of-way, ,
according to the Company's August 14, 2012, Form 10-Q filing with
the U.S. Securities and Exchange Commission for the fiscal year
ended June 30, 2012.
Several putative class actions relating to the installation of
fiber-optic cable in certain rights-of-way were filed against
Qwest on behalf of landowners on various dates and in various
courts in Alabama, Arizona, California, Colorado, Delaware,
Florida, Georgia, Illinois, Indiana (in both Illinois and Indiana
there is a federal and a state court case), Iowa, Kansas,
Kentucky, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico,
New York, North Carolina, Oklahoma, Oregon, Pennsylvania, South
Carolina, Tennessee, Texas, Utah, Virginia, Washington and
Wisconsin. For the most part, the complaints challenge the
Company's right to install its fiber-optic cable in railroad
rights-of-way. The complaints allege that the railroads own the
right-of-way as an easement that did not include the right to
permit the Company to install its fiber-optic cable in the right-
of-way without the Plaintiffs' consent. Most of the actions
purport to be brought on behalf of state-wide classes in the named
Plaintiffs' respective states, although two of the currently
pending actions purport to be brought on behalf of multi-state
classes. Specifically, the Illinois state court action purports to
be on behalf of landowners in Illinois, Iowa, Kentucky, Michigan,
Minnesota, Nebraska, Ohio and Wisconsin, and the Indiana state
court action purports to be on behalf of a national class of
landowners. In general, the complaints seek damages on theories of
trespass and unjust enrichment, as well as punitive damages. On
July 18, 2008, a federal district court in Massachusetts entered
an order preliminarily approving a settlement that would have
resolved all of the claims now asserted in the actions described
above, except the action pending in Tennessee. On December 9,
2009, the court denied final approval of the settlement on grounds
that it lacked subject matter jurisdiction. The parties are now
engaged in negotiating and finalizing settlements on a state-by-
state basis, and have filed and received final approval of
settlements in Alabama and Illinois federal court, and in
Tennessee state court. Final approval also has been granted in
federal court actions in Idaho, Montana and North Dakota, to which
Qwest is not a party.
The Company says it has accrued an amount that it believes is
probable for these matters; however, the amount is not material to
its financial statements.
No updates were reported in the Company's latest Form 10-Q filing
with the SEC.
Qwest Communications International Inc. is an integrated
communications company engaged primarily in providing an array of
communications services to its residential, business, governmental
and wholesale customers. The Company's communications services
include local and long-distance, network access, private line
(including special access), broadband, data, managed hosting,
wireless and video services. In certain local and regional
markets, it also provides local access and fiber transport
services to competitive local exchange carriers.
SEARS HOLDINGS: Continues to Defend Wage and Hour Class Suits
-------------------------------------------------------------
Sears Holdings Corporation continues to defend itself against
class action lawsuits alleging violations of wage and hour laws,
according to the Company's August 16, 2012, Form 10-Q filing with
the U.S. Securities and Exchange Commission for the quarter ended
July 28, 2012.
The Company is a defendant in several lawsuits containing class-
action allegations in which the plaintiffs are current and former
hourly and salaried associates who allege various wage and hour
violations and unlawful termination practices. The complaints
generally seek unspecified monetary damages, injunctive relief, or
both. Further, certain of these proceedings are in jurisdictions
with reputations for aggressive application of laws and procedures
against corporate defendants.
SHELL: Judge Tosses "Hot Fuel" Settlement Offers
------------------------------------------------
David Tanner, writing for Land Line Magazine, reports that the
judge in the ongoing class action lawsuit over "hot fuel" has sent
10 retailers back to the drawing board on their settlement offers,
an attorney in the case said. Hot fuel refers to retail gas and
diesel sold without the retailer adjusting for temperature.
Plaintiffs, including truckers, say hot fuel shortchanges
consumers to the tune of billions of dollars a year.
Robert King, a St. Louis attorney for the plaintiffs on behalf of
the Chicago firm Korein Tillery, says the retailers -- including
Shell, BP, ConocoPhillips and ExxonMobil -- are currently
retooling the settlement offers in an effort to appease Judge
Kathryn Vratil of the U.S. District Court for the District of
Kansas.
Judge Vratil is presiding over the consolidated case consisting of
lawsuits filed in 26 states dating back to 2006.
Truckers were among the first to recognize that the temperature of
the fuel they purchased seemed to affect how far they could travel
on a fill-up. Numerous OOIDA members are named plaintiffs in the
lawsuits, but the Association is not a named party.
Ten retail companies offered settlements earlier this year, the
majority of which involve a gradual, voluntary move to install
technology known as automatic temperature compensation, or ATC, on
fuel pumps. ATC would adjust the price the consumer pays to
account for the temperature of the fuel.
Retailers have fought against ATC proposals in Congress and at
national weights-and-measures meetings, saying installation of the
technology would be cost-prohibitive and cause fuel prices to
rise.
In September, one of the hot fuel cases went to trial in U.S.
District Court for the District of Kansas. In that case, two
Kansas businessmen, including a FedEx trucker, came up short in
trying to convince a 10-member jury that three retailers --
QuikTrip, 7-Eleven and Kum & Go -- knowingly intended to harm
consumers by selling hot fuel.
Mr. King says the "intent to harm" standard in Kansas law was
tough to prove, but plaintiffs in other states might have a better
shot.
According to Mr. King, the plaintiffs are working on bringing
another of the cases to trial, perhaps in a state that produces
higher temperatures than Kansas. But for that to happen, Judge
Vratil must certify another class. Mr. King estimates it could
take until late 2013 or early 2014 to get another case to trial,
but that is not set in stone.
How much does hot fuel matter? Wholesalers and refiners have known
about the effects of temperature on liquid fuels for more than 100
years. At that level "above the rack," wholesalers and refiners
rely on a 60-degree standard to ensure a fair deal on both sides
of the transaction. Curiously, the retail pump remains the
solitary holdout in the fuel supply chain to implement a 60-degree
standard for the sale.
Evidence in the lawsuit suggests that for every 15 degrees that
fuel temps are above 60, a consumer is shortchanged about 1
percent in energy content.
Some truckers have reported diesel temperatures as high as 120
degrees, which, according to the formula, could lead to a consumer
being shortchanged 8 percent.
According to the OOIDA Foundation, small-business truckers
purchase an average of 18,000 gallons of fuel in a year,
demonstrating that truckers have the most to lose from hot fuel.
The defendants say they are not breaking any current laws and have
no intent to harm consumers or profit from fuel temperature. A
Kansas City-based lawyer representing retailers has called the
lawsuits frivolous, a claim the plaintiffs take exception to.
TYSON FOODS: FSIS Lists Stores That Received Recalled Products
--------------------------------------------------------------
The U.S. Department of Agriculture's Food Safety and Inspection
Service disclosed that certain stores in various states received
Chicken Wyngz products that have been recalled by Tyson Foods,
Inc.
The FSIS says the list of store locations may not include all
retail locations that have received the recalled product or may
include retail locations that did not actually receive the
recalled product. Therefore, the FSIS says, it is important that
consumers use the product-specific identification information
available at http://is.gd/lq7hvN,in addition to the list of
retail stores, to check meat or poultry products in the consumers'
possession to see if they have been recalled.
Nationwide, State-Wide, or Area-Wide Distribution
-------------------------------------------------
Retailer Name Location
------------- --------
Bottom Dollar Stores in Maryland, New Jersey, Ohio,
Pennsylvania
Food Lion Stores in Delaware, Maryland, Virginia,
and West Virginia
Hannaford Stores in New York and New England
states
H-E-B Stores in Texas
Kroger Nationwide
Price Chopper Stores in Massachusetts, New York, and
Vermont
Publix Stores in Florida and Georgia
Redner's Markets Stores in Delaware, Maryland and
Pennsylvania
Roundy's Stores in Wisconsin and greater Chicago
area
Shaw's Supermarkets Stores in Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont
Wal-Mart Nationwide
Wegmans Stores in New York and Pennsylvania
Specific Store-Wide Distribution (Stores and Location)
------------------------------------------------------
Retailer Name City and State
------------- --------------
Davis Monthan Davis Monthan, Arizona
Luke Air Force Base Commissary Glendale, Arizona
Camp Pendleton Commissary Camp Pendleton, California
Fort Irwin Fort Irwin, California
Imperial Beach Naval Imperial Beach, California
Air Station Commissary
San Diego Naval Base Commissary San Diego, California
Price Chopper Torrington, Connecticut
Dover AFB Commissary Dover AFB, Delaware
Bolling AFB Commissary Washington, DC
Aberdeen Commissary Aberdeen, Maryland
Andrews AFB Commissary Andrews AFB, Maryland
Fort Meade Commissary Fort Meade, Maryland
Fort Detrick Commissary Frederick, Maryland
Patuxent River NAS Commissary NAS Patuxent River, MD
Walter Reed Commissary Silver Spring, Maryland
McGuire AFB Commissary McGuire AFB, New Jersey
Picatinny Arsenal Commissary Picatinny Arsenal, NJ
Fort Hamilton Commissary Brooklyn, New York
Camp Lejeune Commissary Camp Lejeune, NC
Fort Bragg North Commissary Fort Bragg, North Carolina
Fort Bragg South Commissary Fort Bragg, North Carolina
Seymour Johnson AFB Commissary Goldsboro, North Carolina
Cherry Point MCAS Commissary Cherry Point, NC
New River Commissary Jacksonville, NC
Carlisle Barracks Commissary Carlisle Barracks, PA
Price Chopper Dunmore, Pennsylvania
C.E. Kelly SF Commissary Oakdale, Pennsylvania
Tobyhanna Commissary Tobyhanna Army Depot, PA
Fort Buchanan Commissary Fort Buchanan, Puerto Rico
Fort Myer Commissary Arlington, Virginia
Dahlgren Commissary Dahlgren, Virginia
Fort Belvoir Commissary Fort Belvoir, Virginia
Fort Eustis Commissary Fort Eustis, Virginia
Fort Lee Commissary Fort Lee, Virginia
Langley AFB Commissary Langley AFB, Virginia
Norfolk NAVSTA Commissary Norfolk, Virginia
Portsmouth NNSY Commissary Portsmouth, Virginia
Quantico MCB Commissary Quantico MCCB, Virginia
Oceana NAS Commissary Virginia Beach, Virginia
Sugar Grove Commissary Sugar Grove, West Virginia
VISA: RILA Opposes Class Action Interchange Settlement
------------------------------------------------------
The Retail Industry Leaders Association (RILA) on Oct. 12 issued
the following statement in advance of the submission of the
proposed class action interchange fee settlement to the court for
preliminary approval. The proposed settlement stems from lawsuits
challenging the anticompetitive swipe fee practices of Visa and
MasterCard.
Lawyers purporting to represent the merchant community have
indicated that they will submit the proposed settlement to the
court for preliminary approval on October 12. The proposed
settlement is due to be submitted to the court by October 19.
Once submitted, merchants objecting to the deal will have 30 days
to submit arguments urging the court to reject the proposal.
"Negotiators have greatly underestimated the outrage among
retailers over this flawed proposed settlement," said RILA
President Sandy Kennedy. "Retailers overwhelmingly view this
proposal not as a settlement, but as surrender."
"The proposed class action settlement not only preserves the
broken debit and credit markets, but it also denies retailers
their future legal rights and effectively forces merchants to fund
the settlement through unrestrained interchange fees in
perpetuity. The proposal is unacceptable in every way and we look
forward to making our case to the courts."
RILA joins numerous other organizations speaking out in opposition
to the proposal, including a majority of the named class
plaintiffs.
RILA is the trade association of the world's largest and most
innovative retail companies. RILA members include more than 200
retailers, product manufacturers, and service suppliers, which
together account for more than $1.5 trillion in annual sales,
millions of American jobs and more than 100,000 stores,
manufacturing facilities and distribution centers domestically and
abroad.
WAL-MART STORES: Texas Judge Tosses Gender Bias Class Claims
------------------------------------------------------------
David Lee at Courthouse News Service reports that a federal judge
in Texas tossed gender discrimination class claims against Wal-
Mart on Oct. 15, finding them barred by the statute of
limitations.
Named plaintiff Stephanie Odle sued the retailer in October 2011
after the U.S. Supreme Court decertified a national class of
former female employees in Wal-Mart v. Dukes. That decision found
that Betty Dukes and other employees failed to demonstrate class
commonality.
Ms. Odle's suit alleges females workers are "subjected to gender
discrimination as a result of specific policies and practices in
Wal-Mart's regions located in whole or in part in Texas,"
according to the complaint.
Wal-Mart allegedly denies women equal opportunities for promotion
to management-track positions, as well as equal pay for hourly
retail positions and salaried management positions.
Wal-Mart moved to dismiss part of the amended complaint or, in the
alternative, to strike the class claims.
U.S. District Judge Reed O'Connor concluded the class claims "are
barred by the statute of limitations, and should be dismissed.
The Oct. 15 decision cites the 5th Circuit's "no piggyback rule,"
which bans former class members from filing a subsequent class
action if a court has already found the suit inappropriate for
class action, assuming the statute of limitations has already run
for their class action claims.
"Piggybacking" of one class action onto another would result in
the indefinite tolling of the statute of limitations, the 5th
Circuit has ruled.
Judge O'Connor rejected claims that a pair of U.S. Supreme Court
rulings override the 5th Circuit's rule.
"The court finds that these cases do not support plaintiffs'
assertion," the 19-page opinion states. "First, these cases both
address the Fifth Circuit's authority to overrule a prior
decision. They do not specify what authority a district court has
to disregard existing precedent. Second, these cases do not state
that a district court can rely on Supreme Court cases that merely
imply that a case is overruled, as plaintiffs allege."
Judge O'Connor also dismissed Ms. Odle's individual claims with
prejudice, finding that rejection of class certification in Dukes
removed standing for a plaintiff like Ms. Odle to pursue
injunctive or declaratory relief.
"Odle was required to file a new lawsuit in order to protect her
claims, and her failure to do so within the statute of limitations
now bars her claims," he wrote.
Judge O'Connor nevertheless refused to grant Wal-Mart's motions to
dismiss or strike class allegations based on the plaintiffs'
failure to allege Rule 23's commonality requirement. He also
refused to dismiss plaintiffs who have not satisfied the Equal
Employment Opportunity Commission charge requirement, nor
plaintiffs who violated Title VII's particularized venue
requirement.
The plaintiffs are represented by Hal Gillespie with Gillespie,
Rozen & Watsky; Joseph Sellers with Cohen Milstein Sellers & Toll;
and Brad Seligman with the Impact Fund.
A spokeswoman for the legal team said they plan to appeal the
disappointing decision.
"This ruling in no way reflects on the merits of the gender
discrimination case against Wal-Mart," Turner Strategies
spokeswoman Pam Avery said in a statement. "The claim was brought
to the District Court so that the thousands of Texas region Wal-
Mart workers who have been denied equal pay and promotion could
one day have their day in court. If the ruling stands, they will
be denied that opportunity. We plan to appeal this ruling, which
relies heavily on a 25-year-old 5th Circuit Court of Appeals
decision, which we believe has been effectively overturned by
subsequent U.S. Supreme Court decisions."
A copy of the Order in Odle, et al. v. Wal-Mart Stores Inc., Case
No. 11-cv-2954 (N.D. Tex.), is available at:
http://www.courthousenews.com/2012/10/16/walmart.pdf
WALT DISNEY: Theme Park Settlement on Brink of Collapse
-------------------------------------------------------
Zach Winnick, writing for Law360, reports that a class action
settlement requiring Walt Disney Parks & Resorts U.S. Inc. to make
its theme parks more accessible to the visually impaired teetered
toward collapse on Oct. 12 as class representatives told a
California federal judge they don't support modifications Disney
proposed to address due process concerns.
Plaintiffs' attorney Andy Dogali conceded at a hearing on Oct. 12
that Disney's proposed revisions are more beneficial to class
members than a deal his clients supported in July but said their
position has changed.
WESTERN HEALTH: Has Yet to File Defense in Privacy Class Action
---------------------------------------------------------------
Diane Crocker, writing for The Western Star, reports that Western
Health has yet to file a statement of defense in a class-action
lawsuit in relation to privacy breaches revealed by the Health
Authority earlier this year.
Scott Burden of Brothers and Burden Law Office filed a statement
of claim in the matter in late August. The statement names
Western Health and Donna Colbourne, the employee accused of
breaching some 1,043 patient files, as defendants. Ms. Colbourne
was terminated from her position as a clerk with the health
authority following an internal investigation.
Mr. Burden said discussions are ongoing between his firm and
council for Western Health on how the matter is going to proceed.
"It's not the same as your typical lawsuit where your defense
would normally be filed within 10 days unless there's an agreement
of counsel not to have it filed," said Mr. Burden.
"So there is some support for them not to have to file their
defense until such time that the application for certification has
been held."
Mr. Burden said a judge has to hear the application to determine
whether or not a class exists under the law.
He expects that process will take place in the next couple of
months.
The claim filed by Mr. Burden names Valerie Dyke and Catherine
Allen-Vater as representative plaintiffs, but he said the actual
number of plaintiffs is now in the 250 to 300 range.
Meanwhile, Mr. Burden said the discussions with Western Health are
nowhere near talking settlement.
He said the health authority will want to the see the application
for certification held and determine whether Mr. Burden and Bob
Buckingham will be working together or have competing interests.
Mr. Buckingham, a St. John's lawyer, was the first to file a
class-action lawsuit in the matter. That lawsuit lists Barbara
Hynes of Corner Brook as the representative plaintiff.
WOODLANDS SCHOOL: Class Action Settlement Deadline Extended
-----------------------------------------------------------
Theresa McManus, writing for The Record, reports that the Supreme
Court of British Columbia is giving former Woodlands' residents
more time to submit claims for the abuse they suffered at the
school.
Chief Justice Robert J. Bauman has extended the claim deadline in
the Woodlands class action settlement for an additional year.
Former residents of the school now have until Sept. 19, 2013 to
file claims.
Klein Lyons, the law firm representing hundreds of former
Woodlands' residents in a class action suit, states the judge's
reasoning is that the "claims process is much more complicated and
time consuming than the parties apparently considered in the
negotiation and finalization of the settlement agreement."
The Public Guardian and Trustee of British Columbia states that
the Supreme Court of B.C. previously extended the initial
Sept. 19, 2011 claim deadline until Sept. 19, 2012.
Survivors of the New Westminster facility, which operated as
Woodlands School from 1950 to 1996, filed a class-action lawsuit
in 2002.
The provincial government later agreed to a compensation package
for Woodlands survivors, but the courts excluded residents who had
suffered abuse before Aug. 1, 1974 when the Crown Proceedings Act
took effect.
The provincial government agreed to settle with Woodlands
survivors for between $3,000 and $150,000, depending on the level
of abuse each person suffered. Former residents and advocates
have called for compensation for all victims of abuse at Woodlands
School.
According to Klein Lyons, two independent investigations confirmed
wide-spread physical and sexual abuse of Woodlands residents.
David Klein, whose firm has been retained by more than 800 members
of the class action, said the province has taken a "scorched earth
approach" in its response to the survivors' claims.
"Only nine claims have been decided by the court-appointed
adjudicators in the almost two years that the settlement has
operated," he stated in a press release. "I would be surprised if
the province isn't spending more money paying an army of lawyers
and experts to fight these claims than it would cost to provide
meaningful compensation to the survivors."
Many former Woodlands residents gathered at the site in October
2011 to watch the demolition of the Centre Block tower. The
battle for compensation for all victims of abuse who lived at
Woodlands was a reoccurring theme at the demolition ceremony.
"The oldest, most fragile Woodlands survivors who left the
institution prior to Aug. 1, 1974 continue to be left out in the
cold," Mr. Klein said in the press release. "While the province
was not legally required to compensate residents for abuse prior
to 1974, the cutoff date is a morally arbitrary decision."
Mr. Klein said the province could make compensation available to
all Woodlands residents if it wanted to. He believes there are
fewer than 500 pre-1974 survivors who are still alive.
Bill McArthur, a former Woodlands resident and an advocate for
compensation for all residents who suffered abuse at Woodlands,
said the only way residents will have closure is by being
compensated in a fair and timely manner.
"I am very happy that the building is coming down," he said at the
tower block demolition ceremony. "I am sad, at the same time,
that the Woodlands' survivors are still being abused by this
government even as we are talking. They are still not
compensating the abuses that we suffered."
WORLDWIDE ASSET: Settlement Spurs Debt Collection Suit Dismissal
----------------------------------------------------------------
Patrick Lunsford, writing for insideARM.com, reports that making
good on one of the consequences of a recent class action
settlement against an ARM firm, the district court in Maryland on
Oct. 11 dismissed some 3,100 debt collection lawsuits filed in
state courts.
The cases that were dismissed cannot be refiled and any liens
stemming from settled cases will be released. Any judgments must
also be reported as "satisfied."
The case, Winemiller et al. v. Worldwide Asset Purchasing et al.
was filed in 2009 and a settlement was reached in March of this
year. Judge Richard D. Bennett issued a final order on the
agreement in U.S. District Court on August 24. The defendants are
a group of collection agencies and debt buyers including Worldwide
Asset Purchasing LLC, Worldwide Asset Purchasing II, West
Receivable Services Inc. and West Corp.
The case alleged that the companies were not properly licensed to
collect in Maryland and that they "consistently misstated the
total amount of the principal, wrongly including interest and fees
in the principal calculation," in violation of the Fair Debt
Collection Practices Act (FDCPA). Further, the case alleged that
some of the debts pursued in court were beyond the statute of
limitations.
Worldwide also had to pay $575,000 in the settlement, the largest
chunk of which went to the plaintiffs' attorneys in the case.
XL FOODS: Faces Class Action Over Tainted Beef
----------------------------------------------
Darryl Greer at Courthouse News Service reports that in a class
action, a woman hospitalized with e. coli poisoning blames it on
XL Foods' and Nilsson Bros.' tainted beef, whose 1.5 million lb.
recall was the biggest beef recall in Canadian history.
Erin Thornton claims she fell ill after eating ground beef that
was subject to the recall.
The Canadian Food Inspection Agency investigated a tip from U.S.
officials that beef from XL's Brooks, Alberta plant had tested
positive for e. coli.
The Brooks facility processes 35 percent of Canada's beef,
according to the complaint. The meat is sold throughout Canada
and in several U.S. states.
Weeks after sounding the alarm, the U.S. Department of Agriculture
issued public health alerts in 30 states, leading to the recall of
more than 2.5 million pounds of beef products in the United
States.
Ms. Thornton claims the defendants' food safety procedures were
inadequate and defective, leading to the massive contamination.
And she claims that after the contamination was discovered, the
companies bungled the recall.
"In both Canada and the United States, the recall was conducted in
several stages, with the result that contaminated products were
available for purchase (and subsequent consumption) for an
extended and unreasonable period of time," the complaint states.
"In Canada, the recall was staggered over a span of at least 25
days beginning on September 16, 2012. In the United States, the
recall was staggered over a span of at least 8 days beginning on
September 20, 2012."
Ms. Thornton is represented by Kieran A.G. Bridge, with Siskinds
LLP.
Asbestos Litigation
ASBESTOS UPDATE: Liberty Mutual Fails in Bid to Dismiss Suit
------------------------------------------------------------
Judge Catherine D. Perry of the U.S. District Court for the
Eastern District of Missouri, Eastern Division, denied Liberty
Mutual Insurance Co.'s motion to dismiss a suit filed by
Mallinckrodt US LLC.
Mallinckrodt is a defendant in multiple actions filed by third
parties seeking damages for exposure to asbestos-containing
products. Mallinckrodt alleges that the claims brought against it
are covered by an insurance policy issued by Liberty Mutual.
Mallinckrodt also claims that Liberty Mutual entered into a cost
sharing agreement with its predecessor-in-interest and other
insurers to allocate defense and indemnity costs for these types
of asbestos suits. In the suit, Mallinckrodt seeks a declaration
that Liberty Mutual has a duty to defend and indemnify it in the
third party asbestos lawsuits. Mallinckrodt also brings claims
for breach of both the insurance policy and the cost sharing
agreement, vexatious refusal to pay, and bad faith failure to
settle.
Judge Perry, in an Oct. 2, 2012 Decision, pointed out that
Mallinckrodt and Liberty Mutual obviously have had many years of
dealing with one another as the underlying asbestos litigation has
wound its way through various courts. Their failure to resolve
this dispute, including their failure to agree even on whether
arbitration is required, smacks of gamesmanship, Judge Perry
ruled. Judge Perry stated that both should reconsider their
current posture and attempt to resolve the dispute to avoid
further unnecessary expense and delay.
The case is MALLINCKRODT US LLC, Plaintiff, v. LIBERTY MUTUAL INS.
CO., Defendant, Case No. 4:12CV1340 CDP (Mo.). A copy of Judge
Perry's Decision is available at http://is.gd/MGg6Tpfrom
Leagle.com.
ASBESTOS UPDATE: Ariz. Court Junks Inmate's Asbestos Claims
-----------------------------------------------------------
Judge G. Murray Snow of the U.S. District Court for the District
of Arizona allowed Jamar L. Yancey, who was previously confined in
Maricopa County's Durango Jail in Phoenix, Arizona, to proceed
with his pro se complaint but denied his claims for damages due to
asbestos exposure for failure to allege facts to support the
presence of airborne asbestos fibers at the Durango Jail. The case
is Jamarr L. Yancey, Plaintiff, v. Joseph M. Arpaio, et al.,
Defendants, No. CV 12-1511-PHX-GMS (SPL)(Ariz.). A copy of Judge
Snow's Decision dated October 3, 2012, is available at
http://is.gd/hYaqKgfrom Leagle.com.
ASBESTOS UPDATE: NY Court Junks Worker's Appeal as Improper
-----------------------------------------------------------
William Hollis applied for workers' compensation benefits in 2000
alleging certain occupational diseases based upon his exposure to
asbestos and other irritants. Hearings were held over the course
of several years, culminating in a decision by the Workers'
Compensation Law Judge disallowing the claim. Upon review, the
Workers' Compensation Board modified, and established the claim
for asbestos-related pleural disease and chronic irritative
bronchitis. The Board also determined that claimant is not
entitled to the inference that his loss of earnings is
attributable to his occupational diseases and returned the case to
the calendar for further development of the record on the issue of
causally-related loss of earnings. Claimant appealed, arguing
that the Board erred in determining that he is not entitled to the
inference.
In a Sept. 27, 2012 Decision, the Appellate Division of the
Supreme Court of New York, Third Department, dismissed the appeal
because the Board's decision is interlocutory in nature and does
not dispose of all substantive issues or reach threshold legal
issues that may be determinative of the claim, and thus is not
properly the subject of an appeal.
The case is IN THE MATTER OF WILLIAM HOLLIS, Appellant, v. MORELLI
MASONS, INC., ET AL., Respondents, and WORKERS' COMPENSATION
BOARD, Respondent, 512408 (N.Y.). A copy of the Appellate Court's
Decision is available at http://is.gd/Vfl96Zfrom Leagle.com.
ASBESTOS UPDATE: Parties Must Explain Breach of Duty Claims
-----------------------------------------------------------
The U.S. District Court for the District of South Carolina, Rock
Hill Division, heard argument on defendants Asbestos Processing
LLC, et al.'s Motion for Summary Judgment on September 26, 2012.
Near the conclusion of the hearing, plaintiffs Odell Parket, et
al., raised an argument that they had not previously raised in
their briefs -- namely, that the Plaintiffs' claim of breach of
fiduciary duty could survive the motion for summary judgment even
if the court finds that the Plaintiffs had no viable workers'
compensation claims at the time they retained the Defendants. The
Defendants' counsel then briefly refuted the Plaintiffs' argument
though he was unable to prepare in advance to discuss that point.
District Judge Joseph H. Anderson, Jr., directed the parties to
further explain whether the breach of fiduciary duty claim could
remain in this case even if the court were to find that the
Plaintiffs had no viable workers' compensation claims as urged by
Defendants in their motion for summary judgment.
ASBESTOS UPDATE: Carpenter's Illness Tied to TLC Products
---------------------------------------------------------
David Konstantin alleges that he was exposed to asbestos when he
worked as a carpenter from 1975 to 1977, during new construction
at 622 Third Avenue and the Olympic Towers, and that, as a result
of this exposure, he developed mesothelioma of the tunica
vaginalis. An entity known as Tishman Realty and Construction
Co., Inc., which is now defunct, was the general contractor at
both sites. During the trial, the Supreme Court, New York County,
found that TLC was the successor to Tishman Realty and therefore
TLC was potentially liable for claims asserted against it based on
Tishman Realty's actions.
The jury found that asbestos-containing compound was used at the
sites; that Mr. Kostantin was exposed to asbestos at the sites;
and that the exposure to asbestos was the cause of his injury.
The jury also found that TLC failed to use reasonable care to
prevent or correct the use of the asbestos containing joint
compound, or to prevent and correct the unsafe sanding methods.
The jury awarded the plaintiff $7 million for past pain and
suffering; $12 million for future pain and suffering; $64,832 for
past lost earnings; and $485,325 for future lost earnings, and
apportioned 76% of the fault to TLC. TLC now moves to set aside
the verdict on various grounds.
Judge Joan A. Madden, in a Sept. 26, 2012 Decision, denied TLC's
motion holding that evidence in the case sufficiently established
a causation between TLC's asbestos-containing products and the
Plaintiff's mesothelioma and that all expert testimonies in the
case were property admitted.
The case is DAVID KONSTANTIN, Plaintiffs, v. 630 THIRD AVENUE
ASSOCIATES, et al, Defendants, Docket No. 190134/2010 (N.Y.). A
copy of Judge Madden's Decision is available at
http://is.gd/nQGlABfrom Leagle.com.
ASBESTOS UPDATE: Claims Against RPM International Remain Stayed
---------------------------------------------------------------
All claims against RPM International Inc. and its affiliates that
are derivative of the asbestos claims against its subsidiaries in
bankruptcy remain stayed, according to the Company's Form 10-Q
filing with the U.S. Securities and Exchange Commission for the
quarterly period ended August 31, 2012.
The Company states: "On May 31, 2010, Bondex International, Inc.
("Bondex") and its parent, Specialty Products Holding Corp.
("SPHC"), filed Chapter 11 reorganization proceedings in the
United States Bankruptcy Court for the District of Delaware.
"Bondex and SPHC are defendants in various asbestos-related bodily
injury lawsuits filed in various state courts. These cases
generally seek unspecified damages for asbestos-related diseases
based on alleged exposures to asbestos-containing products.
"SPHC is the parent company of Bondex and is also the parent
company for various operating companies that are not part of the
reorganization filing, including Chemical Specialties
Manufacturing Corp.; Day-Glo Color Corp.; Dryvit Holdings, Inc.;
Guardian Protection Products Inc.; Kop-Coat Inc.; TCI, Inc. and
RPM Wood Finishes Group, Inc. SPHC and Bondex (the "filing
entities") took this action to permanently and comprehensively
resolve all pending and future asbestos-related liability claims
associated with Bondex and SPHC-related products. As a result of
the filing, all Bondex and SPHC asbestos personal injury lawsuits
have been stayed due to the imposition of an automatic stay
applicable in bankruptcy cases, with the exception of certain
cases with respect to which the stay was lifted. In addition, at
the request of SPHC and Bondex, the bankruptcy court has entered
orders staying all claims against RPM International Inc. and its
affiliates that are derivative of the asbestos claims against SPHC
and Bondex. Through the Chapter 11 proceedings, the filing
entities intend ultimately to establish a trust in accordance with
section 524(g) of the Bankruptcy Code and seek the imposition of a
channeling injunction that will direct all future SPHC-related and
Bondex-related claims to the trust. It is anticipated that the
trust will compensate claims at appropriate values established by
the trust documents and approved by the bankruptcy court. At this
time, it is not possible to predict how long the proceedings will
last, the form of any ultimate resolution or when an ultimate
resolution might occur.
"Prior to the bankruptcy filing, the filing entities had engaged
in a strategy of litigating asbestos-related products liability
claims brought against them. Claims paid during the year ended May
31, 2010, prior to the bankruptcy filing, were $92.6 million,
which included defense-related payments during the year of $42.6
million. With the exception of the appeal bond satisfied during
our 2012 third fiscal quarter and the potential payment, no claims
have been paid since the bankruptcy filing and it is not
contemplated that any claims will be paid until a plan of
reorganization is confirmed and an asbestos trust is established
and operating.
"Prior to the Chapter 11 bankruptcy filing, we recorded asbestos-
related contingent liabilities that included estimations of future
costs, which by nature are subject to many uncertainties that may
change over time, including (i) the ultimate number of claims
filed; (ii) the amounts required to resolve both currently known
and future unknown claims; (iii) the amount of insurance, if any,
available to cover such claims, including the outcome of coverage
litigation against the filing entities' third-party insurers; (iv)
future earnings and cash flow of the filing entities; (v) the
impact of bankruptcies of other companies whose share of liability
may be imposed on the filing entities under certain state
liability laws; (vi) the unpredictable aspects of the litigation
process including a changing trial docket and the jurisdictions in
which trials are scheduled; (vii) the outcome of any such trials
including judgments or jury verdicts, as a result of our more
aggressive defense posture, which included taking selective cases
to verdict; (viii) the lack of specific information in many cases
concerning exposure to products for which one of our subsidiaries
is responsible and the claimants' diseases; (ix) potential changes
in applicable federal and/or state law; and (x) the potential
impact of various proposed structured settlement transactions or
subsidiary bankruptcies by other companies, some of which are the
subject of federal appellate court review, the outcome of which
could have materially affected future asbestos-related liability
estimates.
As a result of their bankruptcy filing, SPHC and Bondex are
precluded from paying dividends to shareholders and from making
payments on any pre-bankruptcy filing accounts or notes payable
that are due and owing to any other entity within the RPM group of
companies (the "Pre-Petition Intercompany Payables") or other pre-
petition creditors during the pendency of the bankruptcy case,
without the Bankruptcy Court's approval. Moreover, no assurances
can be given that any of the Pre-Petition Intercompany Payables
will ever be paid or otherwise satisfied.
"When SPHC emerges from the jurisdiction of the Bankruptcy Court,
the subsequent accounting will be determined based upon the
applicable circumstances and facts at such time, including the
terms of any plan of reorganization.
"SPHC has assessed its liquidity position as a result of the
bankruptcy filing and believes that it can continue to fund its
and its subsidiaries' operating activities and meet its debt and
capital requirements for the foreseeable future.
"Bondex recorded an accrued liability for asbestos claims through
2016 as of May 31, 2006 of $421.3 million. This amount was
calculated on a pretax basis and was not discounted for the time
value of money.
"During the fiscal year ended May 31, 2008, the ten-year asbestos
liability established as of May 31, 2006 was reviewed and
evaluated. Management added $288.1 million to the existing
asbestos liability, which brought Bondex's total asbestos-related
balance sheet liabilities at May 31, 2008 to $559.7 million. On
May 30, 2010, the day prior to the bankruptcy filing, Bondex had
recorded an asbestos related product liability of $397.7 million."
RPM International Inc. manufactures and sells specialty chemical
products to industrial and consumer markets in the United States
and internationally.
ASBESTOS UPDATE: H.B. Fuller Estimates $0.5M Probable Liabilities
-----------------------------------------------------------------
H.B. Fuller Company, as of September 1, 2012, estimated its
probable liabilities related to asbestos claims, excluding those
related to a group settlement, at $0.5 million, according to the
Company's Form 10-Q filing with the U.S. Securities and Exchange
Commission for the quarterly period ended September 1, 2012.
The Company states: "From time to time and in the ordinary course
of business, we are a party to, or a target of, lawsuits, claims,
investigations and proceedings, including product liability,
personal injury, contract, patent and intellectual property,
health and safety and employment matters. While we are unable to
predict the outcome of these matters, we have concluded, based
upon currently available information, that the ultimate resolution
of any pending matter, individually or in the aggregate, including
the asbestos litigation described in the following paragraphs,
will not have a material adverse effect on our results of
operations, financial condition or cash flow. However, adverse
developments and/or periodic settlements could negatively impact
the results of operations or cash flows in one or more future
periods.
"We have been named as a defendant in lawsuits in which plaintiffs
have alleged injury due to products containing asbestos
manufactured more than 25 years ago. The plaintiffs generally
bring these lawsuits against multiple defendants and seek damages
(both actual and punitive) in very large amounts. In many cases,
plaintiffs are unable to demonstrate that they have suffered any
compensable injuries or that the injuries suffered were the result
of exposure to products manufactured by us. We are typically
dismissed as a defendant in such cases without payment. If the
plaintiff presents evidence indicating that compensable injury
occurred as a result of exposure to our products, the case is
generally settled for an amount that reflects the seriousness of
the injury, the length, intensity and character of exposure to
products containing asbestos, the number and solvency of other
defendants in the case, and the jurisdiction in which the case has
been brought.
"A significant portion of the defense costs and settlements in
asbestos-related litigation continues to be paid by third parties,
including indemnification pursuant to the provisions of a 1976
agreement under which we acquired a business from a third party.
Historically, this third party routinely defended all cases
tendered to it and paid settlement amounts resulting from those
cases. In the 1990s, the third party sporadically reserved its
rights, but continued to defend and settle all asbestos-related
claims tendered to it by us. In 2002, the third party rejected the
tender of certain cases and indicated it would seek contributions
for past defense costs, settlements and judgments. However, this
third party is defending and paying settlement amounts, under a
reservation of rights, in most of the asbestos cases tendered to
the third party. During the fourth quarter of 2007, we and a group
of other defendants, including the third party obligated to
indemnify us against certain asbestos-related claims, entered into
negotiations with certain law firms to settle a number of
asbestos-related lawsuits and claims.
"In addition to the indemnification arrangements with third
parties, we have insurance policies that generally provide
coverage for asbestos liabilities (including defense costs).
Historically, insurers have paid a significant portion of our
defense costs and settlements in asbestos-related litigation.
However, certain of our insurers are insolvent. We have entered
into cost-sharing agreements with our insurers that provide for
the allocation of defense costs and, in some cases, settlements
and judgments, in asbestos-related lawsuits. Under these
agreements, we are required in some cases to fund a share of
settlements and judgments allocable to years in which the
responsible insurer is insolvent. In addition, to delineate our
rights under certain insurance policies, in October 2009, we
commenced a declaratory judgment action against one of our
insurers in the United States District Court for the District of
Minnesota. Additional insurers have been brought into the action
to address issues related to the scope of their coverage.
"During the fourth quarter of 2007, we and a group of other
defendants entered into negotiations with certain law firms to
settle a number of asbestos-related lawsuits and claims over a
period of years. In total, we had expected to contribute up to
$4.1 million, based on a present value calculation, towards the
settlement amounts to be paid to the claimants in exchange for
full releases of claims. Of this amount, our insurers had
committed to pay $2.0 million based on the probable liability of
$4.1 million. Our contributions toward settlements from the time
of the agreement through the end of fiscal year 2011 were $2.2
million with insurers paying $1.2 million of that amount. Based on
this experience we reduced our reserves in the fourth quarter of
2011 to an undiscounted amount of $0.3 million with insurers
expected to pay $0.2 million. There were no contributions or
insurance payments during the first nine months of 2012, therefore
our reserves for this agreement and our insurance receivable
remained unchanged from year-end. These amounts represent our best
estimate for the settlement amounts yet to be paid related to this
agreement. Our reserve is recorded on an undiscounted basis.
"In addition to the group settlement, a summary of the number of
and settlement amounts for asbestos-related lawsuits and claims is
as follows:
39 Weeks Ended 39 Weeks Ended
September 1, 2012 August 27, 2011
----------------- ---------------
Lawsuits and claims settled 9 5
Settlement amounts $500,000 $400,000
Insurance payments received
or expected to be received $400,000 $300,000
"We do not believe that it would be meaningful to disclose the
aggregate number of asbestos-related lawsuits filed against us
because relatively few of these lawsuits are known to involve
exposure to asbestos-containing products that we manufactured.
Rather, we believe it is more meaningful to disclose the number of
lawsuits that are settled and result in a payment to the
plaintiff.
"To the extent we can reasonably estimate the amount of our
probable liabilities for pending asbestos-related claims, we
establish a financial provision and a corresponding receivable for
insurance recoveries. As of September 1, 2012, our probable
liabilities and insurance recoveries related to asbestos claims,
excluding those related to the group settlement, were $0.5 million
and $0.5 million, respectively. These amounts relate to one
pending case and seven settled cases for which final insurance
payouts have not yet been made. We have concluded that it is not
possible to reasonably estimate the cost of disposing of other
asbestos-related claims (including claims that might be filed in
the future) due to our inability to project future events. Future
variables include the number of claims filed or dismissed, proof
of exposure to our products, seriousness of the alleged injury,
the number and solvency of other defendants in each case, the
jurisdiction in which the case is brought, the cost of disposing
of such claims, the uncertainty of asbestos litigation, insurance
coverage and indemnification agreement issues, and the continuing
solvency of certain insurance companies.
"Based on currently available information, we have concluded that
the resolution of any pending matter, including asbestos-related
litigation, individually or in the aggregate, will not have a
material adverse effect on our results of operations, financial
condition or cash flow. However, adverse developments and/or
periodic settlements could negatively impact the results of
operations or cash flows in one or more future periods.
In addition to product liability claims, we are involved in other
claims or legal proceedings related to our products, which we
believe are not out of the ordinary in a business of the type and
size in which we are engaged."
H.B. Fuller Company is a global formulator, manufacturer and
marketer of adhesives, sealants, paints and other specialty
chemical products.
ASBESTOS UPDATE: GenCorp Had 146 PI Cases Pending as of Aug. 31
---------------------------------------------------------------
GenCorp Inc. has been, and continues to be, named as a defendant
in lawsuits alleging personal injury or death due to exposure to
asbestos in building materials, products, or in manufacturing
operations. The majority of cases are pending in Texas and
Pennsylvania. There were 146 asbestos cases pending as of
August 31, 2012, , according to the Company's Form 10-Q filing
with the U.S. Securities and Exchange Commission for the quarterly
period ended August 31, 2012.
The Company states: "Given the lack of any significant consistency
to claims (i.e., as to product, operational site, or other
relevant assertions) filed against the Company, the Company is
unable to make a reasonable estimate of the future costs of
pending claims or unasserted claims. Accordingly, no estimate of
future liability has been accrued.
"In 2011, Aerojet received a letter demand from AMEC, plc, the
successor entity to the 1981 purchaser of the business assets of
Barnard & Burk, Inc., a former Aerojet subsidiary, for Aerojet to
assume the defense of twenty-one asbestos cases, involving 264
plaintiffs, pending in Louisiana and reimbursement of over $1.0
million in past legal fees and expenses. AMEC is asserting that
Aerojet retained those liabilities when it sold the Barnard & Burk
assets and agreed to indemnify the purchaser therefor. Under the
relevant purchase agreement, the purchaser assumed only certain,
specified liabilities relating to the operation of Barnard & Burk
before the sale, with Barnard & Burk retaining all unassumed pre-
closing liabilities, and Aerojet agreed to indemnify the purchaser
against unassumed liabilities that are asserted against it.
Aerojet has requested information from AMEC pertaining to the
basis of the demand and discussions are ongoing. Accordingly, no
estimate of liability has been accrued for this matter as of
August 31, 2012.
Historical product liability costs associated with the Company's
asbestos litigation cases for the first nine months of fiscal
2012:
Claims filed as of November 30, 2011 146
Claims filed 18
Claims tendered 2
Claim settled 1
Claims dismissed 15
Claims pending as of August 31, 2012 146
The claim settled in the first nine months of fiscal 2012 was less
than $0.1 million. Legal and administrative fees for the asbestos
cases for the first nine months of fiscal 2012 were $0.3 million.
GenCorp Inc. engages in the manufacture and sale of aerospace and
defense products and systems in the United States.
ASBESTOS UPDATE: 14 Japan Sites Have High Levels of Airborne Fibro
------------------------------------------------------------------
The Yomiuri Shimbun of Japan reports that as of last month,
asbestos levels exceeding the World Health Organization's safety
limit were detected in 14 cases at sites where buildings damaged
by last year's Great East Japan Earthquake were being demolished,
according to a government study.
Asbestos is a textile-like mineral that if inhaled by humans may
lead to serious health problems including lung cancer. As the
material is ideal for fireproofing and insulating against noise, a
large quantity had been imported since the 1960s, with most used
in construction.
In 2006, an ordinance of the Industrial Safety and Health Law was
revised to prohibit the use of construction materials that contain
more than 0.1% of asbestos.
The risk of airborne asbestos to people's health was pointed out
after the 1995 Great Hanshin Earthquake.
Amid such concerns in the wake of last year's devastating
earthquake and tsunami disaster, the Environment Ministry is
aiming to bolster its authority to inspect demolition sites.
The Health, Labor and Welfare Ministry and the Environment
Ministry conducted the study to measure the density of asbestos in
the air at 114 demolition sites in Miyagi, Iwate, Fukushima,
Tochigi, Ibaraki and other prefectures.
The study found that between 10.6 and 783.5 parts of asbestos per
liter of air were detected at 14 sites, much higher than the WHO's
safety limit of 10.
The largest level, 783.5, was found in a hotel being demolished in
a business district in Aoba Ward, Sendai.
According to the Sendai city government, demolition of the
building's exterior started in November without measures to
prevent asbestos from scattering, such as covering the walls with
plastic sheets. As a result, the material spread to nearby areas.
Ministry inspectors confirmed that 360 parts per liter of air had
been detected at the perimeter of the hotel and nearby.
At a demolition site in Ibaraki Prefecture, 419.8 parts per liter
of air of asbestos were detected in January. Airborne asbestos
was also confirmed in Ishinomaki and Kesennuma in Miyagi
Prefecture, and in Mooka, Tochigi Prefecture.
Asbestos was used as a construction material in many buildings
until the 1990s. The Industrial Safety and Health Law stipulates
that when such buildings are demolished, the sites should be
covered with plastic sheets or special equipment should be used to
keep the material from spreading.
However, such measures were not taken sufficiently at the sites
where excessive amounts of asbestos were found.
In the disaster-hit areas, a large amount of demolition work had
to be conducted in a short period of time. The ministries thus
assume demolition companies were too overwhelmed to take such
precautions.
In the wake of the Hanshin quake, at least three workers involved
in demolition activities developed tumors as a result of inhaling
asbestos, and were recognized as victims of work-related health
damage.
The then Environment Agency conducted research on the spread of
asbestos at 36 building demolition sites in Hyogo Prefecture.
The study showed that more than 10 parts per liter of air were
found at three spots around the perimeters of the sites. The
highest level detected was 21.2 parts, much lower than the level
detected in Sendai in the latest study.
Following the new findings, the Environment Ministry plans to
revise the Air Pollution Control Law, which stipulates measures to
prevent asbestos-related health damage, to bolster the ministry's
authority to conduct on-the-spot inspections.
The current law obliges companies to notify local governments when
they begin work to tear down buildings in which asbestos was used.
However, if firms do not report their activities, local government
inspectors have no authority to enter the sites.
To get around this, the ministry plans to revise the law to allow
inspections at all work sites. It aims to submit a bill to this
end in the next ordinary Diet session.
The ministry recommends that people who are concerned about their
health regarding airborne asbestos contact their local government
or public health-care center.
ASBESTOS UPDATE: Discovery Could Hasten Mesothelioma Diagnosis
--------------------------------------------------------------
Ivanhoe Health Correspondent Marianne Thornton reports that a new
study has discovered a blood protein signature that could help to
diagnose mesothelioma faster, which would allow patients to start
treatment sooner.
The 13 blood proteins linked to malignant mesothelioma were
identified by researchers from the company SomaLogic along with
colleagues from other institutions after comparing proteins in the
blood of individuals exposed to asbestos without the disease to
blood proteins in mesothelioma patients with prior asbestos
exposure.
They found that these 13 blood proteins are in fact linked to the
disease, even in the early stages, so they could possibly be used
as an early detection test.
"We have assembled blood proteins and the data that we collected
on their levels in the blood into a classifier; so it uses the
information from all of the proteins to give a risk assessment of
whether the person has mesothelioma or not," Rachel Ostroff, the
Clinical Research Director at SomaLogic told Ivanhoe.
Patients with mesothelioma often have a poor prognosis and few
treatment options because of the difficulty of early diagnosis and
how aggressive the disease is.
"The disease takes decades, 20 or 30 years after the asbestos
exposure, to manifest and once mesothelioma starts growing, it's a
very aggressive disease. It progresses very quickly from
undetectable to quite a large extent of the disease and is fatal
within a year or two," Ostroff explained.
For these reasons, diagnosis of mesothelioma while it is still in
the early stages could give patients a better shot at treating the
disease.
"For people who are at risk, who have a history of asbestos
exposure, monitoring the presence of these proteins and earlier
detection of the disease can help them seek treatment while the
disease is still amenable to treatment," Ostroff said.
You also may be seeing this blood protein test soon. "We're
actively talking to partners about licensing the test so it can be
offered in a clinical lab," Ostroff said.
ASBESTOS UPDATE: EMU Complete Assessment Suggests Major Abatement
-----------------------------------------------------------------
Emily Schiola of The Daily Emerald reports that from the missing
ceiling tiles to the water stained-concrete, it is obvious that
the EMU needs some work. Students often complain about the lack
of outlets or the outdated color scheme, but the real problems lie
within the building -- and these are much more serious.
There are rooms full of buckets collecting water from leaks that
can't be fixed. Rust covers the valves containing the main water
source for the building. Numerous pipes are being held together
with duct tape.
While a 2007 study focused only on the EMU vents, the last
complete Facility Condition Assessment was done in 2002. This
full assessment, commissioned by EMU Facilities Director Dana
Winitzky, was completed by an architect, a structural engineer, a
mechanical engineer, an electrical engineer and an energy
consultant.
It produced some shocking results.
It suggested many of the floors in the older sections of the
building need to be replaced because much of the vinyl tile
contains asbestos. There are also places where lead-based paint
was used.
Also according to the assessment, "The exposed building systems at
the ceiling appear to be in generally good condition, but the
fire-proofing material applied to the underside of the deck may
contain asbestos."
Another section discussed the fact that the building is not
seismically safe and "the damage that may occur from a strong
earthquake could endanger the building occupants."
The document states the "mechanical systems are well-maintained
but are too old to be reliable." It explains the centrifugal fans
should have a life span of about 20 years, but these have been
used for more than 50. According to Winitzky, these fans cannot
be replaced because this model is no longer manufactured.
The electrical system is outdated and needs an overhaul: "The
electrical rooms are full and cannot be expanded in their present
locations," the assessment said.
All of these problems cannot be fixed until the building has a
complete overhaul, but the renovation is at a standstill. The
entire project has been wrapped in controversy. First, the ASUO
executive had to fight for a student vote, then the administration
hired a PR firm to help plan a campaign to gain support, which
caused even more uncertainty. Students are concerned with paying
for something they will not get to use and are unsure about
student space.
However, this assessment shows that something needs to be done to
fix these problems that have only worsened since the document was
released.
ASBESTOS UPDATE: Expert Clarifies How Fibro Affects Public Health
-----------------------------------------------------------------
Russell Mills at KRMG.com reports that asbestos has made headlines
as the demolition begins at a Tulsa school gutted by fire and
known to have asbestos present, while Oklahoma has just received a
new federal grant to help inspect schools for possible asbestos
related problems.
But an expert says the public actually has little knowledge about
what asbestos actually is and the dangers it may pose to public
health.
Robert Swain owns and operates two businesses in Tulsa that deal
with asbestos, training people how to inspect buildings and
conducting inspections on them, including schools.
He tells KRMG practically everyone is exposed to asbestos and
breathes it in on a daily basis.
"The general public is very ignorant about asbestos, in that they
don't understand that they do breathe it from the ambient air
outside every day," Swain said.
We simply don't breathe in concentrated levels of asbestos for
prolonged periods, which is when the substance becomes dangerous.
"Typically those individuals that become sick as a result of it
are those that have dealt with it day in and day out of their
occupational exposure," he added.
Asbestos is a fibrous rock commonly found in nature and has been
utilized by humans for literally thousands of years.
The Oklahoma Department of Environmental Quality says it has been
used in more than "3000 different products such as textiles,
paper, ropes, wicks, stoves, filters, floor tiles, roofing
shingles, clutch facings, water pipe, cements, fillers, felt,
fireproof clothing, gaskets, battery boxes, clapboard, wallboard,
fire doors, fire curtains, insulation, brake linings, etc."
In fact, Swain says it's still perfectly legal to use asbestos in
manufacturing.
For example, it's used in the manufacture of some types of floor
tiles, brake shoes, roofing materials and more.
But the asbestos standards for schools are much higher than in
other buildings and the EPA has strict guidelines governing its
presence in the halls of learning.
Last year, funding for the inspection program in Oklahoma was cut
back sharply, so it came as very welcome news that the EPA has
awarded a grant of a little more than $242,000 this week for the
program.
Liz McNeill, spokeswoman for the State Department of Labor, says
the agency inspects 100 Oklahoma schools each year and finds
possible violations of the standards in between 30 and 60% of the
schools it inspects.
She adds that once the schools become aware, they have 100%
compliance when it comes to getting the asbestos problems fixed.
The former Barnard Elementary School building, where demolition
begins this week following a devastating fire last month, provides
an example of how people live and work around asbestos for years
without actually being aware and to be fair, without being exposed
to any actual health risks.
Swain says people like pipefitters or machinists who worked for
years without proper protection are the only ones truly likely to
have suffered mesothelioma or other asbestos-related disease.
The EPA recognized the danger in the mid-1970s and began
regulating businesses, requiring those protections.
As for the people living around Barnard, Swain said they wouldn't
have faced any undue exposure during the fire and collapse of
parts of the building, nor will they be exposed to large amounts
of asbestos during the demolition of the school.
ASBESTOS UPDATE: Sioux City Approves Advanced Environmental Bid
---------------------------------------------------------------
Nate Robson of The Sioux City Journal reports that the Sioux City
school board on Tuesday, Oct. 9, approved a $122,653 contract for
asbestos removal at Washington Elementary and former Hoover Middle
School, despite concerns that the district was not given a
discount for both projects.
The winning bid, proposed by Advanced Environmental, of Waterloo,
Iowa, included $61,583 for asbestos removal at Washington and
$61,069 for Hoover. The next closest bid came in at $148,000 for
both projects.
Advanced Environmental's bid was approved by a 4-1 vote. Board
member Molly Williams was the lone dissenter. Members John Meyers
and Walt Johnson were absent.
Williams said she was concerned that Advanced's bid did not offer
a discount for doing both sites. Of the five received bids, only
two offered discounts.
"Why spend the money now? There are no imminent plants at Hoover,"
Williams said. "We included both to get a discount."
Williams said that the lowest bid for Washington, which will be
rebuilt at the current South Martha Street location, was $57,367.
That bid did not include a discount either.
Board member Doug Batcheller said that even without a discount,
the cost for both projects was well below the district's $381,000
estimate.
Williams said low bids are nothing new.
"That's not a real breakthrough for me. I've been here three
years and not once has a bid come in above the estimate," Williams
said.
The U.S. Environmental Protection Agency classifies asbestos as a
hazardous material, and requires that it be removed in a specific
way.
Improperly removing asbestos can cause fibers to become airborne,
according to the Environmental Protection Agency. Those fibers
can cause health problems if inhaled.
Asbestos was once used as a fire retardant.
ASBESTOS UPDATE: Study Suggest Fibro May Cause Many Other Diseases
------------------------------------------------------------------
Alison Reid, Research Associate Professor at University of Western
Australia, writes for The Conversation that the relationship
between asbestos exposure and diseases such as malignant
mesothelioma and lung cancer is well established. But now other
diseases not typically associated with asbestos may possibly be
linked to occupational and non-occupational forms of exposure.
Asbestos refers to a number of naturally occurring minerals that
have crystallized to form long thin fibers and fiber bundles.
There are three main types that have been used commercially --
crocidolite (blue asbestos), amosite (brown asbestos) and
chrysotile (white asbestos).
The difference between these types has to do with the shape and
size of their fibers. Crocidolite and amosite have long, straight
fibers, while chrysotile fibers are short and curly. The shape of
these fibers is thought to be central to the damage they do to
human health. The long straight fibers, in particular, are
thought to easily penetrate into the lungs.
So although all types of asbestos have been found to cause
asbestos-related diseases, some types lead to more of these
diseases than others. Blue asbestos (the type that was mined at
Wittenoom, Western Australia) is the worst for human health,
followed by amosite, and then chrysotile.
Asbestos and Health
Diseases most commonly attributed to asbestos exposure are
malignant mesothelioma, asbestosis and lung cancer. There's a
clear relationship between the amount of asbestos exposure and the
risk of developing mesothelioma and asbestosis, with the risk
increasing as the level of exposure increases.
Malignant mesothelioma is a diffuse cancer that spreads over the
lining of the lung or stomach. It has a long latency period,
rarely developing within 15 years of first exposure. And it is
universally fatal -- the average survival rate, after diagnosis,
is nine months.
Malignant mesothelioma is very rare in people who haven't been
exposed to asbestos. In England, cases were established from
autopsy reports between 1910 and 1940, and the disease became more
frequently diagnosed in the 1950s. The link between asbestos
(crocidolite) exposure and mesothelioma was formally established
in 1960.
Asbestosis is defined as "fibrosis of the lungs caused by asbestos
dust." Patients with well-established asbestosis usually present
with symptoms of shortness of breath and a dry cough. It's a
progressive disease but it's not necessarily fatal. The first
case of asbestosis was described in medical literature in 1906, in
a 33-year-old man who had worked in an asbestos textile factory
for 14 years.
Other kinds of cancers are also more prevalent among workers
exposed to occupational levels of asbestos than the general
population. These include brain cancers, blood-related disorders
(such as leukaemia), kidney cancer, cancer of the larynx, stomach
and colorectal cancer. But the evidence that asbestos causes
these other diseases is limited, mainly due to a lack of proof for
an exposure-response relationship.
The International Agency for Research in Cancer has recently
stated that asbestos exposure causes ovarian cancer. But there's
still some debate about this link in the scientific literature.
Few studies have found an excessive risk of these other cancers
developing in people exposed to asbestos. Fewer still have found
or reported a causal link.
Will We Ever Know For Sure?
Former workers and residents of the blue asbestos mining and
milling town of Wittenoom, Western Australia have been followed up
through cancer and death registries and by regular questionnaires
for over 30 years. Our latest study has revealed a relationship
between cancers other than mesothelioma among people who, as
children, lived in Wittenoom.
Now adults, this group were exposed to blue asbestos before the
age of 15. We have found an increased risk of brain cancer among
both the males and females of this group.
We also found higher rates of leukaemia, prostate and colorectal
cancer among males, and ovarian cancer among females, compared
with the general Western Australian population. These are very
rare cancers, so it's very difficult to state with absolute
certainty that they're caused by exposure to asbestos. Despite
the significantly increased rates of cancer within this group, we
may never know for sure whether asbestos is implicated.
The Wittenoom group also have a high rate of heart disease
compared with the Western Australian population. Again, the
evidence proving that exposure to asbestos causes heart disease is
limited. Although we found an increased risk of heart disease in
this group, we didn't find that the risk increased as the level of
asbestos exposure increased.
The Wittenoom children are still young and heart disease is not a
major cause of death among them. Perhaps a link between heart
disease and asbestos exposure will become apparent as they age.
Recent work from the United Kingdom has shown that ischaemic heart
disease and cerebrovascular disease were more prevalent among a
large group of British workers exposed to occupational levels of
asbestos. In that study, longer exposure was associated with a
greater risk of ischaemic heart disease.
One of the ways we can prove that a disease is caused by asbestos
is to find that the risk of disease increases with the amount of
asbestos exposure. Where we do not find that relationship, we
have to concede that the disease may be caused by other factors
the group have in common. We may not have looked for such factors
or perhaps were unable to look for them in our studies.
Following up the former Wittenoom children may reveal links
between asbestos exposure and these other diseases. The longer
they are followed up, the more information we will learn about the
diseases they develop, and whether asbestos exposure is the cause.
This knowledge may help those still being exposed to asbestos,
because we would be able to correctly identify diseases they may
present with. But the best way of preventing asbestos-related
diseases is to avoid exposure altogether.
ASBESTOS UPDATE: PI Panel Allowed to Intervene in Garlock Case
--------------------------------------------------------------
John O'Brien of Legal Newsline reports that a committee
representing those with asbestos claims against Garlock Sealing
Technologies will be allowed to intervene in the company's fraud
case against a plaintiffs firm.
Tuesday, Oct. 16, U.S. Bankruptcy Judge George Hodges ruled that
the Official Committee of Asbestos Personal Injury Claimants will
participate in Garlock's case against the Houston firm Williams
Kherkher Hart Boundas, which is alleged to have made inconsistent
claims about the origin of client John Phillips' mesothelioma.
The committee says it wishes to intervene on behalf of the firm,
while Garlock claimed it wanted nothing more than to obstruct the
case.
Hodges held a hearing Thursday, Oct. 11. He ordered the committee
to file a pleading articulating its interest in the case within 30
days.
In an earlier report, Legal Newsline reported that Garlock, on
Oct. 1, filed its response to the motion to intervene filed by the
committee. The committee says it will support the asbestos
attorneys if it is allowed to intervene in the case.
Garlock accuses the Houston law firm Williams Kherkher Hart
Boundas of making inconsistent claims about the origin of client
John Phillips' mesothelioma.
"Rather than aligning with Garlock to recover for the Estate money
that the defendants obtained via fraud -- which recovery would
benefit the committee's constituency, asbestos personal injury
claimants -- the committee instead tramps an all too familiar path
of obstruction, waste of Estate resources and defense of the
plaintiffs' bar at the expense of claimants," Garlock's response
says.
"In their desire to oppose the debtors' at every step, the
committee now moves this Court to allow its participation in an
adversary proceeding that it has no statutory right to interrupt,
in which it has no interest that is not adequately protected by
the defendants, and which shares no common questions of law or
fact aside from the committee's attempt to turn the proceeding
into a 'test case' for its approach to estimating the debtors'
liability in the bankruptcy case."
Garlock said that as a representative of asbestos personal injury
claimants and not attorneys, the committee has no legitimate
interest in the case.
"To allow the committee to intervene would unnecessarily inflate
the cost to the Estate of litigating the defendants' misconduct in
the context of the Phillips settlement," Garlock wrote.
The claimants' committee says Garlock has attempted to make
similar fraud claims since its bankruptcy proceedings began in
2010.
"The fraud allegations that Garlock . . . raise(s) here clearly
have bearing on the issues being litigated in the proceeding to
estimate Garlock's asbestos liabilities in the aggregate," the
committee's motion says.
"Such allegations are part and parcel of Garlock's larger
objectives in the estimation case to trump its settlement history,
to develop a new way of valuing its asbestos liability, to oust
the non-bankruptcy courts that typically administer the tort laws,
and to come out smelling like a rose in comparison to the $1.8
billion it paid before bankruptcy for the defense and payment of
asbestos claims . . ."
Garlock is one of more than 60 asbestos defendants to have created
a bankruptcy trust. Injured individuals submit claims to the
trusts for compensation, but file lawsuits against still-solvent
defendants.
Williams Kherkher sued Garlock in 2008 in a Texas state court,
alleging that Phillips' illness was caused by a rare type of
asbestos (crocidolite) that came solely from Garlock's products,
the company claims, at the same time it was pursuing claims
against a manufacturer of products that contained the same type of
asbestos.
Garlock says it was induced to enter into a far larger settlement
than it would have paid. In Texas, juries can allocate a
percentage of liability to responsible third parties.
Phillips worked at Triplex, a company that sold parts that
contained asbestos, from 1966-68, but no records still exist
detailing the company's inventory then.
The company claims the firm could have asserted Johns-Manville's
asbestos-containing gaskets were to blame, but Johns-Manville had
already filed for bankruptcy. More than 90 companies have
declared bankruptcy from asbestos litigation, and more than 60
bankruptcy trusts have been established to pay out claims.
The claimants' committee is a group of plaintiffs with pending
claims against Garlock. Attorney Trevor Swett --
tswett@capdale.com -- of Caplin & Drysdale in Washington, D.C.,
filed the motion Sept. 6.
Co-counsel for the claimants' committee is Travis Moon --
tmoon@mwhattorneys.com -- of Moon Wright & Houston in Charlotte.
Garlock wrote in its complaint that Williams Kherkher attorneys
told two different stories about its client's exposure history.
"(The lawyers) repeatedly signed responses to requests for
information about their client's claim against Garlock by
describing a history of exposure to asbestos products that did not
include exposure to the products of (CAPCO)," Garlock's complaint
says.
"The lawyers had reason to believe that telling two different
stories would succeed because their ballots would not be readily
available to the public and their bankruptcy trust claims, when
made, would be kept confidential."
Garlock obtained copies of ballots cast on plans of reorganization
in certain bankruptcy cases in April. They showed that a Williams
Kherkher attorney certified that Phillips held a claim against
ASARCO, the owner of CAPCO.
A second ballot cast in 2009 after a settlement with Garlock
showed Phillips had a claim against CAPCO in which he listed a
disease level that required evidence of exposure to products
mined, manufacture, sold, supplied, produced, specified, selected,
distributed or marketed by CAPCO or ASARCO, the company says.
"Garlock is informed and believes that the firm knew about
Phillips' exposure to CAPCO products during 2008-09 when it
responded to or supplemented Garlock's discovery," the complaint
says, "and failed to disclose such exposure to Garlock because it
would decrease the value of the claims against Garlock."
Garlock called the current status of bankruptcy claims and civil
lawsuits "a two-track system that is rife with potential for
abuse."
ASBESTOS UPDATE: EMU Building Stirs University of Oregon Students
-----------------------------------------------------------------
Pat Guth for the Mesothelioma Cancer Alliance reports that the
student union building at the University of Oregon in Eugene needs
a lot of work, and students at the college are concerned that some
of the problems inside the structure might be serious enough to
cause health issues.
According to an article in the Daily Emerald, the student-run
newspaper at the university, the Erb Memorial Union (EMU) building
is in sad shape. "There are rooms full of buckets collecting
water from leaks that can't be fixed. Rust covers the valves
containing the main water source for the building. Numerous pipes
are being held together with duct tape," wrote reporter Emily
Schiola. In addition, she noted, lead-based paint was used on the
walls and much of the vinyl tile in the building contains
asbestos.
The article points out that the last complete Facility Condition
Assessment was done at EMU a decade ago and it appears that little
has been done since that time to upgrade the building. At the
time of the assessment, statements were made as to concerns about
asbestos including the fact that "the exposed building systems at
the ceiling appear to be in generally good condition, but the
fire-proofing material applied to the underside of the deck may
contain asbestos."
Asbestos-containing materials are safe as long as they remain
undisturbed, but leaks and other problems inside EMU could
compromise the asbestos and cause tiny fibers to be released into
the air where students and staff are likely to inhale them.
Asbestos exposure is dangerous and the inhalation of these fibers
can eventually cause respiratory diseases to develop. People who
are exposed to asbestos sometimes wind up with cancerous tumors
and a diagnosis of malignant mesothelioma, a tough-to-fight cancer
that carries with it a grim prognosis.
The article notes that renovation of the building is currently at
a standstill and that the project has been a controversial subject
on the Eugene campus. The Associated Students of the University
of Oregon had to fight to demand a student vote on the topic but
many current students are concerned about putting out money for
something they'll never use. In the meantime, concern continues
as to whether or not it's safe to inhabit the building, which has
a variety of uses, including places to grab a meal or join in an
activity.
ASBESTOS UPDATE: Mesothelioma Survivor Suffers 'Chemo Brain'
------------------------------------------------------------
Tim Povtak of The Mesothelioma Center reports that mesothelioma
survivor Michelle Marshall didn't need a medical study to tell her
the chemotherapy she received years ago had scrambled her ability
to remember things.
She has one now.
"Chemo Brain" is an all-too-real issue for many people dealing
with cancer, according to a recent study. Having foggy thoughts
and forgetting routine things are a couple of the not-so-obvious
side effects of chemotherapy that often get overlooked, despite
the frustration it causes.
"My hair grew back. I don't get sick to my stomach anymore. I've
got energy again. But I still can't remember things," Marshall
told Asbestos.com. "And I used to have a great memory. That's
the side effect they don't warn you about."
Chemotherapy as a cancer treatment often comes with physically and
emotionally draining side effects. Nausea and vomiting, hair
loss, fatigue, mouth sores and diarrhea can be exhausting, but
they also normally pass in a relatively short period of time.
Cognitive impairment -- commonly called Chemo Brain -- can linger
for years. And it's as real as any of the more obvious side
effects.
Marshall, 54, went through chemotherapy after her mesothelioma
diagnosis in 2002 and again after a cancer relapse in 2006.
Before chemotherapy, she worked as an executive assistant to a
high-powered CEO in New York City. Today she is on disability and
essentially retired.
"I can get lost just driving out of my neighborhood. I can't even
imagine trying to multi-task again," she said. "I'm glad they
have a name for this now, but still it's frustrating every day.
I can remember things I did when I was six years old, but I
sometimes can't remember what I did yesterday."
Breast Cancer Study at Moffitt
An extensive study at the Moffitt Cancer Center in Tampa
reaffirmed what many otherwise healthy cancer survivors quietly
have been dealing with in the aftermath of chemotherapy.
Although often dismissed by oncologists and overshadowed by more
noticeable problems, Chemo Brain can frustrate and discourage
cancer survivors for the rest of their lives.
Researchers at Moffitt analyzed 17 previous studies that included
more than 800 breast cancer patients, concluding that verbal and
visuospatial abilities -- the ability to judge space, distance and
dimensions -- were at risk with chemotherapy.
"Earlier studies had reported conflicting evidence on the severity
of cognitive deficits," said Heather S.L. Jim, Ph.D., Moffitt's
lead author of the study, published in the Journal of Clinical
Oncology. "But it (chemo brain) really does exist. There is data
from other cancers, too, that suggest chemotherapy does effect
cognitive function. And there is no reason to think it's
exclusive to breast cancer patients."
Based on the study, patients previously treated with chemotherapy
performed significantly worse on tests of verbal ability than
individuals without cancer. And patients treated with
chemotherapy performed worse on visuospatial ability than those
treated without chemotherapy.
"For a lot of oncologists, it's not always on their radar. Their
focus is keeping patients alive, and preventing recurrence," Jim
said. "This often is overlooked, under reported. There is data
to suggest that chemotherapy does cross the blood brain barrier
and is associated with shrinking some areas of the brain."
Explaining the Mental Fog
Cancer survivors, for many years, have been baffled by -- and even
joked about -- the mental fog in which they find themselves after
chemotherapy treatment. But only in recent years have studies
been done to explain it.
According to the American Cancer Society, symptoms of Chemo Brain
often include:
-- Trouble remembering details they previously knew well,
like dates and names.
-- Taking longer than usual to complete simple tasks because
the thought process is slower.
-- Trouble remembering common words, making them unable to
finish sentences.
-- Memory lapses that cause them to forget simple things.
-- Trouble with simple multi-tasking, like answering the
phone and cooking at the stove at the same time.
Cancer survivors often don't even mention it to their oncologist,
and just find ways to deal with it. Sometimes, the problem fades
away and the mind clears. Other times, it lingers and lingers.
"We found a lot of variety in the effects. Some people just
breeze through it and never have a problem again," Jim said.
"Sometimes patients try and go back to work, and are just not able
to function properly. It can be debilitating cognitively."
Brain studies involving chemotherapy have been difficult to
interpret. Most have not tested patients before chemotherapy to
establish reliable baseline comparisons. There is a lack of
consistency, too, among the research, including the time after
chemotherapy it was taken, and the method of measurement.
The goal of the Moffitt study was a meta-analysis of cognitive
functioning in breast cancer survivors, and clearly there were
deficits in the functioning.
Ways To Overcome Chemo Brain
An encouraging cognitive function study done earlier this year at
Indiana University, published in Breast Cancer Research and
Treatment, does provide hope for those struggling with brain
impairment.
The study detailed two different programs that helped reverse the
loss of cognitive function. One involved simple memory training
that included teaching strategies for remembering that include
text material, word lists and sequencing.
The other involved a computer program called Insight, in which
participants went through a series of progressively more difficult
informational tasks. It is developed by Posit Science, a provider
of brain fitness programs.
The study included 82 breast cancer survivors who undertook
chemotherapy and expressed concerns about their cognitive
functioning.
Many of the studies involving Chemo Brain and treatment to
alleviate the problem involve breast cancer because the pool of
survivors is so large. But doctors seem to agree that it's a
problem with other cancers, too.
"They are, thank goodness, benefiting from survival and are
returning to work and their daily lives," behavior neurologist
Garrett Riggs, M.D., told the Orlando Sentinel. "But they are
finding their memories and cognitive function isn't what it was."
ASBESTOS UPDATE: More Studies Still Needed for Protein Discovery
----------------------------------------------------------------
Michael Smith of MedPage Today reports that Glycoprotein fibulin-3
can be used to identify patients with pleural mesothelioma and may
be a useful biomarker for the asbestos-related illness,
researchers reported.
Plasma levels of the protein were higher in people with the
disease than they were in people exposed to asbestos but who did
not have mesothelioma, according to Harvey Pass, MD, of New York
University Langone Medical Center in New York City, and
colleagues.
And levels in effusions from mesothelioma patients were higher
than they were in patients with effusions from other causes, Pass
and colleagues reported in the Oct. 11 issue of the New England
Journal of Medicine.
On the other hand, the researchers cautioned, it's too early to
say that the protein can be used for early detection because of a
lack of prospective longitudinal studies.
Despite advances in therapy, median survival for pleural
mesothelioma remains about a year from diagnosis, the researchers
noted.
Earlier detection might help, but "is limited by the long latency
period, an inability of imaging to detect the disease at an early
stage even when it is used as a screening strategy, and the lack
of sensitive and specific blood-based markers."
The latter gap, they hypothesized, might be filled by fibulin-3 if
it could be shown to be a "robust biomarker."
To test the idea, they measured fibulin-3 levels in stored plasma
samples from 92 patients with mesothelioma, 136 people exposed to
asbestos but who did not have the disease, 93 patients with
effusions not caused by mesothelioma, and 43 healthy controls.
They also measured levels in stored effusions from 74 patients
with mesothelioma, 39 with benign effusions, and 54 with malignant
effusions not caused by mesothelioma. Some participants had both
types of samples.
The stored samples were collected in Detroit from 1998 through
2005 and in New York from 2005 through 2011, Pass and colleagues
reported.
The researchers also conducted two validation analyses -- one each
using serum and plasma from mesothelioma patients and cancer-free
people with asbestos exposure.
Plasma fibulin-3 levels did not vary according to age, sex,
duration of asbestos exposure, or degree of radiographic changes.
On the other hand, they were significantly higher in patients with
pleural mesothelioma than in asbestos-exposed people without the
disease. In the Detroit cohort, mesothelioma patients averaged
105 nanograms per ml of plasma, compared with 13.9 among the
asbestos-exposed controls (P<0.001) and in the New York cohort,
the respective averages were 112.9 and 24.3 nanograms per ml
(P<0.001).
The same was true for fibulin-3 levels in effusions.
In the Detroit cohort, effusion levels averaged 694.4 nanograms
per ml higher in patients with pleural mesothelioma and 211.5 in
patients with effusion from other causes. In the New York cohort,
the respective averages were 636.4 and 150.6 nanograms per
milliliter. Both differences were, again, significant at P<0.001.
In the validation study using serum, fibulin-3 levels were unable
to discriminate between patients with mesothelioma and those
exposed to asbestos but cancer-free, Pass and colleagues reported.
One possible explanation is that the samples, which were collected
from 1985 through 1996 during the Carotene and Retinol Efficacy
Trial, might have degraded over time, they suggested.
In the other validation study, a set of plasma samples from the
University of Toronto showed lower levels in both patients and
asbestos-exposed controls than either of the American cohorts --
66.4 and 13.9 nanograms per milliliter, respectively.
But, Pass and colleagues reported, the difference remained
significant at P<0.001.
In an overall comparison of patients with and without
mesothelioma, the researchers reported, the receiver-operating-
characteristic curve for plasma fibulin-3 levels had a sensitivity
of 96.7% and a specificity of 95.5% at a cutoff value of 52.8
nanograms per milliliter.
While more research is needed, they concluded, plasma fibulin-3
levels can help tell people with mesothelioma from those who
remain healthy after exposure to asbestos.
Together with levels in effusions, plasma fibulin-3 can also
differentiate mesothelioma effusions from other malignant and
benign effusions, they argued.
ASBESTOS UPDATE: Canadian Mine Confirms Cancellation of Gov't Loan
------------------------------------------------------------------
The Montreal Gazette reports that Canada's last asbestos mine, the
Jeffrey Mine in the Eastern Townships town of Asbestos, won't
reopen, its president said Wednesday, Oct. 10 in an interview with
the newspaper La Tribune.
Bernard Coulombe got confirmation that a C$58-million loan from
the Quebec government that would have helped it reopen for the
next 20 years has been cancelled, the Sherbrooke daily reported on
its website.
Cancelling the loan was an election promise of the Parti
Qu‚b‚cois. Now that it has formed the new government, that
promise has been met, Coulombe told the newspaper.
No official announcement has been made, however. Finance Minister
Nicolas Marceau made no mention of the Jeffrey Mine at a news
conference he gave Wednesday in Quebec City on a different
subject, tax measures.
Early Wednesday evening, a spokesperson for Quebec industrial
policy minister Elaine Zakaib said the government stands by its
plan to cancel the loan, but has made no decision on when or how.
The government has been in discussions with the Jeffrey on the
issue, the spokesperson said.
Asked to comment on the mine's future, Coulombe told The Gazette
through spokesperson Guy Versailles that he'd give no more
interviews until Thursday morning (Oct. 11).
Versailles refused to confirm whether the government loan has,
indeed, been scrapped, nor whether the mine will, in fact, remain
closed.
The loan was announced in June by the Liberal government of then-
Premier Jean Charest.
Long criticized by environmental health experts for producing a
deadly fiber, the Jeffrey was to reopen next summer and produce
250,000 tons of asbestos over the next two decades, mainly for
export to the developing world.
Its proponents said the reopening would have created 425 jobs
directly and 1,000 indirectly.
ASBESTOS UPDATE: Fibro Issue at Sorell Site Probed
--------------------------------------------------
ABC News reports Workplace Standards Tasmania is investigating how
asbestos went undetected at a demolition site in the state's
south.
The asbestos was buried in the foundations of a Girl Guides hall
in Sorell which was demolished for new council chambers.
It was found on Monday, Oct. 8, at a Penna rental property where
it was taken as cleanfill.
Thomas Connelly who lives at the property says he is considering
moving his family away.
Mr. Connelly says he fears for his three children's health and has
contacted the council, the Environment Protection Authority and
the Tenancy Union.
"Basically we want out of the lease ASAP, it's poisonous," he
said.
"You hear stories about kids playing near mines having cancers
now. Apparently it doesn't take a whole lot to cause the illness.
Sorell Council manager, Bill Costin, says a report is being
prepared.
"In the case of this building, we certainly did the checks on the
structure itself given that it was transported there and set up in
'73," he said.
"In those days the issues that we face now were certainly not
present.
"So what, I guess, we weren't aware of was what was lying below
the ground."
Asbestos Free Tasmania Foundation spokeswoman Susan Wallace says
it is not just about what is above ground.
"Asbestos in the past has been crushed from old demolitions and
used as fill in foundations, under roads, under sports fields,"
she said.
"Really what this provides is a lesson that we can't just check
the building.
"We need to check everything we're disrupting at that site."
The council told ABC the asbestos had since been removed from both
sites.
But Mr. Connelly says it is still sitting 100 meters from his
home.
"There's a large skip with this industrial plastic with stuff
wrapped around it," he said.
"It's fenced off and there's a sign saying asbestos removal in
progress."
Mr. Costin says he was informed it had been removed and he will
investigate further.
ASBESTOS UPDATE: Criminal Fines Pushed on Kadina High Fibro Dumper
------------------------------------------------------------------
ABC News reports that the president of a school parents' group
says the fine given to a north coast builder for dumping asbestos
near a play area was appallingly trivial.
The Lismore City Council announced a man would be fined $1500 for
dumping 12 sheets of asbestos fencing in a park opposite the
Kadina High School.
The president of the school's P-and-C Association, Robert Weston,
says the penalty should have been far heavier.
"I found that the level of the fine was absolutely appallingly
trivial," he said.
"Asbestos is such a dangerous product, it really should be
considered as a criminal fine.
"My background is clinical-laboratory medicine and I've seen
dreadful, dreadful results of asbestos contamination.
"They (authorities) need a very heavy legislative stick.
"Because once you've contracted mesothelioma, which is the disease
associated with asbestos contamination, it's a death sentence.
"And the problem with it is, it can take 30, 40, 50 years before
it actually manifests itself."
ASBESTOS UPDATE: Oklahoma Gets $240,000 Asbestos Inspections Fund
-----------------------------------------------------------------
Kristen Griffin for the Mesothelioma Cancer Alliance reports that
in a press release issued on Oct. 9, the Environmental Protection
Agency announced that the state of Oklahoma will be the recipient
of governmental money to use for asbestos inspections in schools
and state-owned buildings.
The $240,000 will also be applied to ensure that professional,
certified asbestos abatement workers are fully trained in the safe
removal of asbestos from structures. Further, the funding will
also ensure that the asbestos abatement contractors hold all of
the necessary accreditation. The Oklahoma Department of Labor
(ODOL) is the recipient of the funding and will oversee the
inspection of the buildings.
Essentially, the majority of the EPA's funding will be applied to
the year-long inspection of schools and state-owned buildings to
tally which buildings contain asbestos. Though it is unclear in
the EPA's press release, it may be safely assumed that the
information gathered from the systematic inspection will help the
state of Oklahoma create an action-plan designed to eventually
safely remove any remaining asbestos.
Further, it may also be assumed that the inspection will provide a
comprehensive status report on the state of the asbestos in these
buildings to ensure that the toxin does not pose an immediate
health threat.
In all, the goal of the funding is to protect school children,
faculty, staff and state employees from unwarranted and
unnecessary asbestos exposure under the Asbestos in School Rule.
Asbestos is a known carcinogen or cancer-causing set of minerals
that was widely used in building construction and materials. Most
industrialized nations, including the United States, have banned
manufacturing products containing asbestos since it was discovered
the extensive health threat the fibers pose.
Among the serious medical conditions asbestos exposure causes is
mesothelioma, a rare form of cancer that affects the protective
lining of the lungs, heart or abdominal cavity. When asbestos is
improperly handled, removed or disturbed, small particles of the
toxin break off into the air. These particles then embed in the
protective lining where it may cause extensive internal damage.
Safe handling of asbestos is crucial to maintain health and must
be left to professional asbestos abatement contractors.
ASBESTOS UPDATE: Hoboken Public Library Completes Abatement
-----------------------------------------------------------
Charles Hack of The Jersey Journal reports that the Hoboken Public
Library is set to reopen Oct. 11 after being closed since
Saturday, Oct. 6, for asbestos abatement.
The library was closed for four days to remove asbestos piping
from the basement to prepare for renovation work and layout
changes, according to a note on the door.
The absestos was added over the decades during improvement work up
to 1983, officials said.
"All of the ACM (asbestos containing) materials within the
building have been surveyed and are appropriately maintained,"
according to a statement by Library Director Lina Podles.
ASBESTOS UPDATE: Hartford Financial Faces $25 Million Lawsuit
-------------------------------------------------------------
Laurel Brubaker Calkins of Bloomberg reports that Hartford
Financial Services Group Inc. faces trial in a lawsuit by a Texas
lawyer who accuses the insurer of causing him to be prosecuted on
bribery charges that were dropped after a mistrial.
The negligence lawsuit includes the lawyer's accusation that the
company's former general counsel, Neal S. Wolin, now U.S. deputy
treasury secretary, took part in a cover-up linked to alleged
extortion by two employees, according to court filings.
Todd Hoeffner, the lawyer seeking $25 million in damages, sued the
Hartford, Connecticut-based insurer in state court in Houston.
Wolin, who isn't named as a defendant in the lawsuit, testified
against Hoeffner in a 2009 criminal trial that ended with a
deadlocked jury. Wolin's testimony will be part of the jury trial
set to begin Oct. 11 with opening statements by lawyers.
Hoeffner was charged with making illegal payments to two claims
processors to get inflated insurance settlements for clients
suffering from silicosis. The charges followed an internal
company investigation ordered by Wolin and given to federal
prosecutors, according to court records.
Jurors at the 2009 trial couldn't reach a verdict. Hoeffner,
later faced with new charges that didn't include bribery, agreed
to a fine and other terms and the criminal case was dropped.
Alleged Extortion
Hoeffner sued Hartford in October 2011 on claims the insurer lied
to the government about him. The motive, he said, was to hide the
claims processors' extortion of $3 million from the portion of the
settlements paid to him as legal fees. He accuses Hartford of
negligence, economic duress, interference with his attorney-client
relationships and intentional infliction of emotional distress.
Hartford protected the employees to keep them from telling
regulators the company lacked sufficient cash reserves to pay
asbestos-related claims at the time of the scheme, and Wolin
participated in the cover-up, Hoeffner said in court filings.
Wolin, though his attorney, denied Hoeffner's allegations and said
that when he learned of what appeared to be a bribery scheme
involving rogue workers, he ordered company investigators to dig
into the matter.
"He directed them to investigate the facts no matter where those
facts led them, and if they deemed it appropriate, to refer the
matter to law enforcement authorities for a full and complete
investigation," James E. Rocap, Wolin's lawyer, said in an e-mail.
"Any assertion to the contrary is ridiculous."
Obama Adviser
Wolin left Hartford in early 2009 to become an adviser in
President Barack Obama's administration. He was named to the
second-highest ranking post at the Treasury in May 2009.
As the No. 2 official behind Treasury Secretary Timothy Geithner,
Wolin has helped lead the department's efforts on the Dodd-Frank
Act financial overhaul.
Chris Flood, Hoeffner's lawyer, said in court papers that the
internal probe "resulted in Hoeffner being indicted on
bribery/kickback allegations that the government later abandoned
because they were not true."
"These charges ruined life as Hoeffner knew it and have destroyed
his legal career," Flood wrote.
Hoeffner, 48, said in court filings he was the victim of extortion
by claims processors.
Two BMWs
The processors, Rachel Rossow and John Prestage, demanded part of
his 40% contingency fee from silicosis settlements with their
company and threatened to scuttle his other agreements, Hoeffner
said in court filings. He said he paid the two about $3 million
including two $50,000 BMW automobiles, from 2002 to 2004 so they
would recommend $34 million in settlements for hundreds of
clients.
Hoeffner said in court filings that he believed Rossow's threats
because she was having an affair with her boss, a senior executive
with veto power over all such settlements.
Hartford said in court papers that "Hoeffner had many options
other than to give in to the criminal extortion," which it
maintains was actually a bribery scheme he concocted. Tainted
settlements earned Hoeffner millions in fees beyond the $3 million
he shared with Rossow and Prestage, the company said in court
filings.
"There is no evidence to support Hoeffner's allegations," Thomas
Hambrick, a Hartford spokesman, said in a phone interview before
the trial. He declined to comment specifically on the company's
asbestos reserves at the time.
Asbestos Reserves
Hartford added $2.6 billion to its asbestos reserves in 2003 and
strengthened them by $262 million in 2004, according to a filing
with the U.S. Securities and Exchange Commission.
Rossow and Prestage pleaded guilty in 2010 to conspiracy to commit
mail and wire fraud. Each was sentenced to one year of probation,
according to court records. Rossow's lawyer, Dan Cogdell, didn't
respond to calls and e-mails seeking comment on Hoeffner's
lawsuit.
Prestage is expected to testify via video in Hoeffner's civil
case, according to his lawyer, Paul Nugent, who declined to
comment further.
According to court filings, Hoeffner testified in the 2009 trial
that he agreed to the processors' demands to settle hundreds of
claims before such cases could exhaust the carrier's coverage.
"In protecting his client's rights, he has suffered for decisions
he should not have been forced to make," Flood said in court
papers.
In a 2004 internal draft memo reviewing Hoeffner's settlements,
the company described the deals as inflated and inappropriate,
according to evidence produced in the criminal trial. The report,
which the company said was never finished, was later given to
prosecutors who used it in their case against Hoeffner, according
to court records.
Wolin Testimony
Wolin testified in 2009 that he hadn't seen the document that
Hoeffner's lawyers call the Wolin Memo. He said the company
determined that its settlements with Hoeffner's clients were fair
and reasonable.
The former general counsel testified that he did nothing wrong and
followed company policy by turning the company's findings over to
law enforcement.
By the end of the five-week trial, the government had stopped
referring to bribes and kickbacks and unsuccessfully moved to have
the terms deleted from a copy of the indictment given jurors.
Jurors deadlocked on charges of conspiracy, fraud and money-
laundering.
Surrendered License
After the mistrial, prosecutors sought to retry Hoeffner under a
new indictment that didn't mention bribery. He signed a pretrial
diversion agreement, completed a year of court supervision, paid a
$2.5 million fine and surrendered his law license for two years.
All charges were dismissed in June, according to court records.
The federal judge who presided over the criminal trial barred
lawyers from questioning Wolin about company asbestos reserves.
State Judge Jaclanel McFarland ruled this month that Wolin can be
questioned by Hoeffner's lawyers on those topics during the
current trial. Wolin's testimony and cross-examination will be
shown to the jury on video.
The case is Sanchez v. Hoeffner, 2010-15489, 133rd Judicial
District Court of Texas (Houston).
ASBESTOS UPDATE: Senators Push For EPA's Proposed Safety Standard
-----------------------------------------------------------------
The Associated Press reports that Montana lawmakers urged the
Environmental Protection Agency on Thursday, Oct. 11, to push
forward with a proposed asbestos safety standard that will guide
the cleanup of a mountain town where hundreds have died from
exposure to the dangerous material.
U.S. Senators Max Baucus and Jon Tester said residents of Libby
have grown frustrated waiting for a pending risk study to be
completed. And the two Democrats accused chemical giant W.R.
Grace Inc. of trying to cloud the science on the issue.
That comes after The Associated Press reported last month that
Grace pressed for the study to be delayed.
The company mined asbestos-containing vermiculite in Libby for
decades. The EPA's proposed standard concludes even a tiny amount
of the material can lead to lung problems. It would be 5,000
times tougher than the standard used in past cleanups addressing
airborne asbestos.
Maryland-based Grace has objected to the EPA's proposal,
suggesting sites across the country could be subjected to costly
cleanups.
But Baucus and Tester wrote in a Thursday, Oct. 1 letter to EPA
administrator Lisa Jackson that it was time to move forward with
the risk study. They blasted Grace for weighing in against the
EPA proposal and alleged company officials had "traded profits for
lives" in Libby.
Health officials say hundreds of people have been killed in Libby
and many more sickened by exposure to asbestos dust. The material
came from the Grace mine outside town and processing plants along
the Kootenai River.
"We are not surprise to find Grace trying to cloud the science or
hide behind the speculative liability of other property owners,"
the senators wrote. "Whatever the state of cleanups at Libby and
other contaminated sites around the country, We must face the
reality of how toxic Libby (asbestos) really is."
The ongoing Superfund cleanup in Libby has cost at least $447
million since 1999 and is expected to last several more years.
The town of about 3,000 people is about 40 miles south of the
Canadian border.
W.R. Grace spokesman Greg Euston said that the company would not
comment on the senators' remarks.
In public testimony and filings with the EPA, Grace has argued
lung problems considered a sign of asbestos disease can be
confused with other health issues such as obesity. The company
maintains that the science used by the EPA to craft its proposal
was flawed and has urged more research.
Manufacturing and trade groups and federal agencies including the
White House Office of Management and Budget also have questioned
the EPA proposal. They said the low threshold falls below even
background asbestos levels seen in parts of the country.
An EPA spokesman in the agency's regional office in Denver
referred questions to agency headquarters in Washington, D.C.,
where officials did not return messages from The Associated Press
seeking comment.
The EPA is to make a final decision on the standard for Libby
sometime next year.
ASBESTOS UPDATE: Sorell Residents Question Council's Effeciency
---------------------------------------------------------------
Hannah Martin of Themercury.com.au reports that a council
contractor has been caught dumping asbestos-filled waste at a
clean fill site in Orielton and setting it on fire.
Sorell Council general manager Bill Costin on Oct. 11 confirmed
council staff, the Environmental Protection Agency and Workplace
Standards had investigated the incident, which happened on Oct. 8.
He said a contractor had removed a demolished hall, which
contained asbestos, from a site in Sorell where council is
preparing to build its new chambers.
The contractor dumped the debris at a landfill in Orielton. The
Council had granted the contractor permission to use the site in
Brinktop Rd for clean fill.
Mr. Costin said council would not ban the contractor from using
the site.
"We'll issue a warning letter in the first instance, and we will
probably increase monitoring of this site while that's in force,"
he said. Mr. Costin said the council had removed all asbestos
debris.
It was small comfort for Tom Connelly, who rents a house on the
clean fill site and lives there with his partner Sally Atkinson
and their three children. He sought legal advice about ending
their lease, over health concerns.
Mr. Connelly said they had lost faith in the Sorell Council's
ability to monitor the site.
"The council has had reports not from me of them dumping tires and
refrigerators and paint cans out there," he said.
"On Monday (Oct. 8), they demolished a Girl Guide hut and dumped
it here, set it on fire and walked away. When we came home there
was an unattended fire burning.
"We had no warning that this was going to happen, no notice from
the real estate or anyone."
Locals have expressed anger at the incident and say it casts doubt
on the council's ability to properly operate Tasmania's first
contaminated waste cell at its Copping landfill site.
"How can we expect they will properly monitor and adequately
manage the toxic waste landfill that is being built at Copping?"
resident Darren McKay said.
But council dismissed the concerns. "All of the proper controls,
all of the proper engineering is there," Mr. Costin said.
ASBESTOS UPDATE: Former St. Edward School Awaits Demolition Date
----------------------------------------------------------------
Natalie Gross of The Carlsbad Current-Argus reports that as the
former St. Edward school building on North Guadalupe Street in
Carlsbad, New Mexico, faces inevitable demolition, parishioners
are doing their best to treasure their last few weeks of memories
with the old building.
After a small amount of asbestos was found in the floors, the
building was officially condemned by the city at the end of
August.
"We found out two weeks before two weeks before we had to start
the religious education classes," said Eva Lopez, the school's
religious education director.
Lopez, says that children and adults alike have already stopped by
to pay their respects.
"What's really touched me is that we've had kids come and buy the
light covers (in the classrooms) because they want a memory and a
piece of this building," said Lopez. Others have taken the school
bells, fire extinguishers, bookshelves, and chalkboards to
remember the old building by. "We used to have 'St. Edward'
outside on the building," added Lopez, "and we had to take it down
because kids wanted to buy the letters."
"It's very emotional," said church member Linda Horton who has
been a part of St. Edward Parish for four years. "People have
grown up going to this church and going to school in this
building."
"We have known for several years that this building is on its last
legs," said Horton, "but we were planning to use this building
until we could build a new one. We have plans in place to build a
new building. The only thing that's stopping us is money.
Recently we had a plumber in here to do some work, and he said, 'I
can't approve this building anymore.' It's been determined that
it's not safe."
The school will start the asbestos abatement process on Oct. 22.
When that's finished, administrators will set the date for
demolition, Horton said.
According to old news articles Horton provided, the building was
erected in 1915, making it nearly 100 years old.
Although the building lacked proper maintenance, it did not lack
proper use.
After the St. Edward Catholic School moved to Church Street,
becoming independent of the local church, St. Edward church
members began using the old school building to host more than 200
children for Sunday school, vacation Bible school and youth
activities. Horton said that they are currently cramming their 12
Sunday School classes into the small convent across the street,
the St. Edward youth center, and the Knights of Columbus Hall.
Besides hosting activities for the parish directly, the old
building has also been used as a health clinic and as a shelter
for Salvation Army workers and people in distress. "Unfortunately
with this building coming down, there's a lot of things that we
won't be able to do," said Horton.
That is why St. Edward parishioners are focusing on raising money
for a new building to go up in its place. "Our goal is to build a
parish hall and a religious education building where we can do
even more for the community. The plans to build a new building,
which would also include a parish hall, are 4 million dollars, so
it's going to take us a long, long time," said Horton.
Parishioners have hosted a rummage sale and fish fry, and their
youth are currently selling World's Finest Chocolate Bars. Each
fundraiser has brought in several hundred dollars, but Horton and
Lopez both know that at this rate, that's just not cutting it.
"You do the math," Horton said.
Horton also said St. Edward is extremely involved in the
community. "We do the Relay for Life every year, we do
Thanksgiving and Christmas baskets, the San Jose fair," she said.
"We're doing all kinds of fundraising, and we're open to any
suggestions from the community," said Horton.
Horton, Lopez and other parishioners are hoping that in this time
of need, Carlsbad citizens will remember all that the St. Edward
church family has done for the community and see this as an
opportunity for the community to do something for them.
ASBESTOS UPDATE: Jury Selection in Meso Lawsuit v. Ford, 51 Others
------------------------------------------------------------------
Christina Stueve Hodges of The Madison / St. Clair Record reports
that about 58 prospective jurors filled a third floor courtroom
Thursday, Oct. 11 for jury selection in an asbestos lawsuit
presided over by Madison County Circuit Judge Clarence Harrison.
Plaintiff Donald Lehr of Fairview Heights filed a lawsuit Jan. 19
against Ford Motor Company, John Crane Company and 50 more
defendant companies, after becoming aware of his mesothelioma
Jan. 3.
Lehr worked as a pipefitter for the U.S. Army, Alcoa in East St.
Louis, Dow Metal Products in Madison, Rexall Drug and Chemical
Company, and Ford Motor Co.
Ford attorney Manuel Sanchez -- msanchez@sanchezdh.com -- asked
the jury how many of them believe Ford puts profits above employee
safety.
"I'm trying to discern possible biases or prejudices," Sanchez
said.
"How many of you agree there are two sides to every story?" he
asked.
"Would any one of you hesitate to render a finding in favor of
Ford and against the plaintiff?"
Sanchez asked the jury if anyone had hard feelings against Ford,
or if anyone worked at the Ford plant in Hazelwood or for any
other Ford-based business.
A female juror told Sanchez the tires on her car were worn after
14,000 miles.
"If they don't want to back up their tires, why do they want to
help out this poor man who's suing?" she said.
Sanchez asked the jury if anyone would hesitate to render a
finding in favor of Ford and against the plaintiff.
"Almost all of you are waiting to see what this case is about, if
the plaintiff is entitled to recover money," Sanchez said.
Plaintiff's attorney Nathaniel Mudd -- nmudd@mrhfmlaw.com -- told
the jury his client wouldn't be able to attend the trial every day
due to his terminal cancer.
"Does anyone else feel you've been bearing the burden of frivolous
lawsuits?" Mudd asked.
A female juror told Mudd she wasn't aware Lehr's case is any
different than any other asbestos case.
"The windfall that people get is astronomical," she said.
A male juror told the court he couldn't see how handing out a
bunch of money will be rewarding to the family.
Harrison asked the jury if anyone had anything stopping them from
being a juror in the case.
A male juror said his father, who had mesothelioma, died of a
heart attack.
Another juror admitted her sister's father had mesothelioma.
A male juror said his father died of mesothelioma.
Mudd is a partner at Maune, Raichle Hartley French & Mudd in St.
Louis.
Sanchez is a partner at Sanchez Daniels & Hoffman in Chicago.
In March 2010, Sanchez defended Ford Motor Co. in an asbestos case
which ended with a defense verdict.
Attorneys for the plaintiffs had asked for more than $14 million
in damages.
Ford was sued along with a number of other brake manufacturers for
allegedly selling products that caused a Chicago man's
mesothelioma.
Madison County Case number 12-L-79.
ASBESTOS UPDATE: Fibro Stalls Demolition of Old Clock Factory
-------------------------------------------------------------
Adam Hochron of The Howell Patch reports that for all the
excitement that came with the sight of the old Route 9 clock
factory in Howell, N.J., being torn down, there have been some
concerns by residents about the status of the seemingly stalled
project.
At an event where he addressed members of the Howell Chamber of
Commerce, Deputy Mayor William Gotto said work had stopped at the
site when asbestos was discovered in the building.
Citing the demolition as an example of the township's property
maintenance code, Gotto said the asbestos will not stop the
project from going forward once the proper permits have been
obtained by the owner.
He also said he was glad to see the work that had already been
done while there was still more to do. "What would you rather
have, would you rather have a building that's sitting there
vacant, that is an eyesore and has no plans to ever be knocked
down filled with graffiti," he asked. "Or would you rather have
someone talking about knocking it down, filing for his permits at
the DEP to do asbestos abatement so he can continue to remove the
building."
The property maintenance code, he said also gives the township
certain options if the owner does not further pursue the
building's demolition. "If it stays the way it is and he doesn't
file or his permits, we have a property maintenance ordinance that
says you need to do this," he said. "Yes it's a pile of rubble,
and there's a reason it's a pile of rubble."
Councilman Robert Nicastro said it was "disappointing," seeing the
project stuck after work had already begun. "You'd like to see it
torn down yesterday but I understand that there's some hazards
that have to be mitigated through the state," he said. "We're
confident it's going to get completed."
On Wednesday night (Oct. 10) Nicastro said the township's building
department has "contacted the property owner to have them secure
the site until the state allows the demolition to continue." The
councilman added that a summons will then be issued if the site is
not secured in a timely manner.
When it is finally brought down, Gotto said that will be a good
step forward for the township. "You can't get any more central in
the middle of our town," he said. "It's right in the middle of
Route 9 and it's right in the middle of 195. It's being torn down
because of the process that got put in place with the property
maintenance code."
ASBESTOS UPDATE: No Fibro Issue at North Common Village Project
---------------------------------------------------------------
Lyle Moran of The Lowell Sun reports that Lowell Housing Authority
Executive Director Gary Wallace said Wednesday, Oct. 10 that he is
pleased the FBI and state Inspector General's Office determined no
asbestos was present or removed during the North Common Village
renovations, and called a new report about asbestos in the
complex's crawl spaces unrelated to the rehab project.
The IG's Office sent Wallace a letter last week saying it found no
evidentiary basis for allegations asbestos and lead paint had been
removed in the 132 units, rehabbed from 2008-2011, without the
proper permits and disposed of illegally.
"We are pleased with the investigation and not surprised by the
report," Wallace told the five LHA board of commissioners at their
monthly meeting.
Wallace also told the board that the reports provided to WCAP
radio and reported on by the station this week about a private
company's finding of asbestos in some of North Common's crawl
spaces were released "for the sole purpose of distorting and
confusing the issue."
He said certain people in the community have "various sordid
reasons" for what he believes are their attempts to confuse the
public. Wallace declined to comment after the meeting.
ATC Associates of Woburn identified the asbestos in some of the
crawl spaces in a July report, which the LHA commissioned as part
of a contract with ATC.
The contract calls for ATC to determine how much asbestos is
present at all of the LHA's major developments and provide
asbestos training for LHA employees.
David Mitchell, ATC's project manager, told the board Wednesday,
Oct. 10, the asbestos was found in the soil in the crawl spaces,
as well as where the pipes go underground from one building to the
next.
ATC recommended based on the soil results that all soil in the
crawl spaces should be considered contaminated with asbestos and
access to the spaces should be limited to qualified personnel.
Workers who do enter the spaces should be properly trained, wear
protective equipment and take care not to create dust, according
to the ATC report.
LHA Commissioner Tim Green asked Mitchell if LHA residents or
maintenance personnel are at any health risk because of the
asbestos in the crawl spaces.
Mitchell said ATC's recommendations were conservative and the
asbestos identified does not pose any threat to workers or
residents.
He said less than 1% of asbestos was found in the soil of a few of
the 28 crawl spaces examined, and a couple samples had more than
1% asbestos.
The LHA Board concluded the meeting by going into executive
session to discuss litigation.
ASBESTOS UPDATE: Advocates Boost Awareness Drive in South Tyneside
------------------------------------------------------------------
The Shields Gazette reports that asbestos campaigners are stepping
up an awareness drive to protect children and teachers from the
deadly dust in South Tyneside schools.
Most schools built before 2000 contain asbestos and experts say a
high proportion of deaths from mesothelioma can be linked to their
premises.
There are almost 2,500 new cases of mesothelioma in the UK each
year and this number is expected to rise by 100 to 120 annually
until at least 2015, with an estimated 250 to 300 of these new
cases each year in the Northern region.
For decades, asbestos products were used extensively throughout
industry and as building materials.
The Northern TUC set up the Asbestos Support and Campaign Group,
which helps sufferers of all asbestos-related diseases, and has
campaigned for pleural plaques compensation.
Now it has teamed up with teaching unions NASUWT, NUT and ATL,
along with GMB and Unison, to raise awareness about the very real
dangers of the material in schools with a new information pamphlet
-- Asbestos in Schools: What teachers, support staff, governors
and heads need to know about the hidden killer within our schools.
The publication has won the support of Hebburn-based campaigner
Anne Craig, whose husband, David, died of mesothelioma, after
being exposed to asbestos fibers decades before.
She said: "Anything which raises awareness of the dangers of
asbestos in our local schools, such as this new pamphlet, is to be
welcomed.
"Research indicates that a fairly high percentage of mesothelioma
cases can be traced back to schools, most of which built before
2000, particularly the systems-built or panel variety, had
asbestos used in their construction. It's very frightening to
think about children being exposed to asbestos in school and
developing mesothelioma years later, because of the long
incubation period of the disease."
It is estimated that more than 75% of schools built before 2000
contain asbestos. As these buildings age and fall into disrepair,
the risk of asbestos exposure increases dramatically.
The number of teachers who have died from mesothelioma has
increased by more than 300 per cent in the last 20 years.
Children exposed to asbestos are five times more likely to develop
mesothelioma than adult teachers in the same environment.
Micky Blench, chairman of the Northern TUC Asbestos Support and
Campaign Group, said: "It is really important that we keep the
spotlight on asbestos issues, as it is too easily dismissed as an
industrial disease and consigned to the past.
"Unfortunately, it is still very much in the present and, worse
still, the future.
"While we can't prevent the damage that has already been done, we
can take proactive steps to minimize risks, one of which is to arm
people with facts, information and practical measures to help
protect themselves and others.
"Hopefully, our new information pamphlet will go some way to doing
just that, and keeping our schools the safe places they should be.
ASBESTOS UPDATE: Fibro Find Closes Some Areas of Camp Hale, CO
--------------------------------------------------------------
Lauren Glendenning of The Vail Daily reports that the U.S. Forest
Service has closed portions of Camp Hale in Colorado after
learning that asbestos likely left behind 50 years ago has been
found in areas of the former military training camp.
Eagle/Holy Cross District Ranger Dave Neely said Friday, Oct. 12,
the Forest Service first learned about the asbestos, which he
refers to as "isolated surface deposits," from the U.S. Army Corps
of Engineers Sept. 25. The corps had contractors working in Camp
Hale to remove other so-called asbestos-containing material when
those contractors located the asbestos on the ground.
The material is located in the northern portion of the encampment
area. Camp Hale, located between Red Cliff and Leadville off
Highway 24, was once home to about 17,000 soldiers training for
World War II known as the 10th Mountain Division. Neely said the
site was deactivated as a military training area in 1965 and the
federal government transferred it back to the U.S. Forest Service
in 1966. The camp was broken down around that time and Neely said
"it's likely the material is associated with that, but we can't
state that for sure."
The areas where asbestos has been found are areas where warehouse
facilities and other camp-related facilities were located, Neely
said.
The U.S. Army Corps of Engineers has been working at Camp Hale as
part of the U.S. Army Environmental Command's Military Munitions
Response Program, said Adam Little, the Camp Hale project's
manager. The work done under that program tries to address
potential explosives safety, health and environmental issues
caused by munitions-related activities at formerly used defense
sites.
Little said the asbestos was actually discovered by the Colorado
Department of Public Health and Environment last year shortly
before winter, but the Army Corps of Engineers couldn't
investigate until after the snow melted. He added that workers
did air monitoring this summer and tests came back negative,
meaning the asbestos is not likely breathed in through the air as
it currently sits, although that possibility hasn't been ruled
out.
"Next week we're looking to get a crew out there to some areas to
spray an agent on there to reduce the potential for airborne
fibers," Little said.
Army Corps of Engineers spokesman Kevin Quinn added that there's
"good evidence" from the work that has been going on at the site
that the air is safe.
The Forest Service enacted the closure in the northern portion of
the encampment area, as well as a closure for areas in the
southern part of Camp Hale, because "protection of public safety
is our highest priority while we develop a long-term strategy for
mitigation of the resource with our partners," Neely said.
Neely said the public safety risk is still being evaluated, but
the Forest Service doesn't want to take any unnecessary chances.
The closure that restricts all entry to the northern encampment
areas is year-round, while the second order limiting travel in the
southern part of the valley to roads and trails is lifted once
there is at least 1 foot of snow on the ground, Neely said.
Neely said the Forest Service closed the area to campers a couple
of years ago to preserve the historical significance of the site,
and earlier this summer the Forest Service implemented its new
travel management plan which restricted motorized uses on several
roads in and around Camp Hale.
With the first rifle season for hunters beginning Oct. 12, Neely
wants the public to know that travel is allowed through the main
entrance of Camp Hale and on to other roads, but travel through
the Camp Hale valley floor is restricted to specific trails. The
Forest Service has also posted maps and closure information at the
site.
As for any potential risk to local drinking water, Eagle River
Water and Sanitation District spokeswoman Diane Johnson said that
asbestos is a particulate, meaning the Water District already has
a system in place for treating it.
"Just like any other types of particulates that would be in the
river, the treatment process that we have at our water plants is
actually the best treatment available to remove particulates, so
we would continue doing the same type of treatment," Johnson said.
ASBESTOS UPDATE: Abatement of Old Saratoga Highway Garage Resumes
-----------------------------------------------------------------
Paul Post of The Saratogian reports that asbestos removal at the
old town highway garage in Saratoga, N.Y., is expected to resume
soon and should be completed this fall, Supervisor Thomas Wood
said.
The town has already approved spending up to $65,000 for asbestos
removal and hired Schenectady-based Environmental Remediation
Services Inc. for the job.
However, the firm discovered more than expected when work began,
prompting a new study of the building.
Last week, the Town Board approved paying ERSI $43,000 for work
done to date. Now, a new asbestos removal plan must be drawn up
before work resumes.
Wood said ERSI will probably be hired to finish the job.
"I'm not sure yet," he said. "I would suspect that we will."
The supervisor said completing the job could cost up to $50,000
more, on top of the $43,000 already spent.
The town built a new highway garage adjacent to the old one on
Route 32 in the mid-1990s. For some years, the old garage was
used for storage.
Then it became so dilapidated that the town no longer used it.
Recently, Saratoga Lake Improvement District (SLIPD) expressed
interest in using the old garage to store its boats and milfoil
harvesting equipment.
However, because more asbestos was found, the building will
probably be torn down, Wood said.
"We own seven or eight acres there," he said. "We could put up a
new structure and work out a long-term lease agreement with them."
SLIPD officials could not immediately be reached for comment.
ASBESTOS UPDATE: Mower Cty Grandstands Plan to Be Decided Oct. 23
-----------------------------------------------------------------
Kristen Griffin for the Mesothelioma Cancer Alliance reports that
though not officially scheduled, Mower County, Texas officials
hope to have a final decision on the proposed controlled burn of
the former grandstands by Oct. 23. The date on the demolition
also hinges on a thorough hazardous materials (HAZMAT) inspection
of the site.
Mower County commissioners voted unanimously to tear down the
grandstands, but the decision on how to carry out the demolition
remains undecided. Many officials are leaning towards the
proposed controlled burn, a quick and effective method that is
also financially sound. With a small demolition budget, the
options for a complete tear down are limited.
Regardless, Mower County officials agree that whatever chosen
method will include a HAZMAT inspection prior to commencement.
With this type of inspection, authorities will search the
grandstand for any hazardous materials including asbestos, lead
and florescent light fixtures. Demolishing a crumbling structure
-- especially by employing a controlled burn -- may result in
widespread environmental and health risks.
If dangerous contaminants are found at the location, the materials
will be safely and properly removed from the grandstands.
Mower County officials are considering two bids for the demolition
project. Concerns over the potential for hazardous materials,
including asbestos, will make the "burning option tricky," said
Commissioner Mike Ankeny.
Asbestos is a naturally occurring set of minerals used in a
variety of building materials and supplies. Though the use of and
manufacturing with asbestos has been banned in the United States,
asbestos is prevalent in many buildings and structures.
Asbestos was mainly used in conjunction with other materials, such
as cement, to add strength, fire resistance and insulation. As a
fibrous material, asbestos is highly dangerous when disturbed, as
small particles become airborne. Inhaling these particles is the
most common form of asbestos exposure and may lead to serious
medical conditions, one of which, mesothelioma, currently does not
have a cure.
Part of the problem with using a controlled burn to demolish the
old grandstands is that if any trace of the hazardous materials
are left or not thoroughly removed, a toxic cloud may form.
Further, one of the contractors bidding on the demolition project
claimed that lead paint could not be burned.
Final decisions on the method of demolition will be determined by
Oct. 23 along with a winning bidder.
ASBESTOS UPDATE: Fibro Found in 20 Roe Valley Schools
-----------------------------------------------------
The Derry Journal (UK) reports that pupils throughout the Roe
Valley are being schooled in buildings that contain the cancer-
causing fiber asbestos, it has been revealed.
Across Derry, Limavady and Strabane almost 80 school buildings --
including nursery, primary and secondary schools -- were found to
contain asbestos, according to the Department of Education. In
the Roe Valley, 20 school buildings -- both primary and secondary
-- were found to have the fiber.
Commonly used as a building material from the 1950s through to the
1980s, asbestos can cause disease including potentially fatal
asbestosis and lung cancer if it is disturbed and particles become
airborne.
The Department has moved to assure the public that left
undisturbed asbestos poses no threat.
"Government policy is that, provided asbestos is in good condition
and is unlikely to be disturbed, it is better to manage it for the
remaining life of a school rather than to disturb it," a
spokeswoman said.
The shocking extent of the presence of asbestos in schools right
across the north was revealed in response to a question asked in
the Stormont Assembly by SDLP MLA Patsy McGlone.
SDLP councillor, Michael Coyle said the news was "no surprise".
"The first thing is, bearing in mind the age of the schools, it's
no surprise there is asbestos in most of the schools," he said.
"The danger of asbestos only arises when it is disturbed. The
consequences can be very serious when this happens, but I am sure
that the education authorities and boards of governors of schools
have put in place a good routine in maintenance of the buildings
which should pick up any damaged or dangerous material."
The Department of Education spokeswoman continued: "The Department
takes the matter of health and safety in schools very seriously
and is acutely aware of the potential risk posed by asbestos-
containing materials for staff and pupils of educational
establishments. The education sectors, in line with current
legislation and policy, manage the presence of asbestos-containing
materials in the schools' estate."
The spokeswoman said should deterioration of asbestos-containing
materials occur, "then they should be removed, repaired or
encapsulated by a licensed asbestos company."
Last month it was revealed that across the north almost 900
schools were found to contain asbestos.
ASBESTOS UPDATE: Delaware Court Accepts Case Rejected in Calif.
---------------------------------------------------------------
John O'Brien of Legal Newsline reports that a Delaware court has
welcomed an asbestos lawsuit that was rejected by a California
court that advised the plaintiff to re-file in Texas.
New Castle County Superior Court Judge John Parkins on Monday,
Oct. 8, refused to dismiss the asbestos claim filed by Charles
Williams against truck-maker PACCAR. The case was originally
filed in a California court.
Parkins called the California ruling dismissing the case "narrow."
It held the state of its docket and the plaintiff's limited
contacts with California made it an inconvenient forum.
"It never decided, nor was it asked to decide, that Delaware was
an inconvenient forum for resolution of Plaintiff's claims,"
Parkins wrote. "It has long been the policy of this court to
accord great deference to the plaintiff's choice of forum."
The California court concluded Texas was an ideal forum, but
didn't decide the case couldn't be litigated in Delaware, Parkins
said.
ASBESTOS UPDATE: Fibro Report Closes Cwmcarn School Indefinitely
----------------------------------------------------------------
Wales News (UK) reports that a comprehensive school has been
closed "until further notice" as an investigation into asbestos on
site takes place.
Caerphilly council said Cwmcarn High School was closed after a
structural report received on Oct. 12.
The council said it was "taking immediate and decisive action to
safeguard the health and wellbeing of pupils and staff at the
school."
A spokesman said: "As of today the school building will be closed
for further detailed asbestos investigation.
"Although we appreciate that this action will cause concern and
inconvenience to parents, I am sure you will appreciate that the
safety of pupils and staff at the school is of paramount
importance. The school will be closed until further notice."
ASBESTOS UPDATE: 900 Students In Limbo Due to School Contamination
------------------------------------------------------------------
Thisissouthwales.co.uk reports that a Caerphilly comprehensive
school has been forced to close after a report found the building
contains asbestos.
Further investigations are to be carried at Cwmcarn High School in
the Ebbw Valley.
Caerphilly council does not yet have a plan for alternative
premises for the school's 900 pupils.
It said they are working on options and will update parents next
week.
The local authority said the decision to shut the premises was
taken for the safety of staff and pupils.
ASBESTOS UPDATE: Camp Hale in CO Shuts Down for Decontamination
---------------------------------------------------------------
CBS4 reports that a popular and historic place for camping and
hunting in the mountains is now shut down because it's
contaminated with asbestos.
Camp Hale in Eagle County, Colo., was a vital Army facility before
World War II. It's located along Highway 24 between Minturn and
Leadville. A lot of buildings in the area were destroyed in the
1960s when Camp Hale was handed back over to the U.S. Forest
Service.
For the better part of half a century the biggest problem has been
trying to clean up munitions at the site. But for about the last
10 years the Army Corp of Engineers has been there removing
asbestos containing material, but now the most recent discovery is
of even greater public risk.
"This is because protection of public safety is our highest
priority while we develop a long-term strategy," Dave Neely with
the U.S. Forest Service said. "As soon as we were informed there
was a potential public safety risk we took immediate action to
secure the site from public entry.
"One of the reasons we wanted to get public information out is
because rifle season starts (Saturday) and there are a lot of
people who will be arriving in order to hunt in those units in the
hillside adjacent to Camp Hale."
With many visitors still expected through the fall and winter,
some parts of Camp Hale are completely closed. Other Forest
Service roads are open beyond access to Camp Hale.
"While in the valley bottom, however, they need to stay on those
roads and trails."
The Army Corp of Engineers says there is not an inherent risk to
those who have been to Camp Hale in the past, but mitigation of
the asbestos is the top priority. The mitigation process is set
to start next week.
ASBESTOS UPDATE: UK Firm Cited for Putting Subcontractors at Risk
-----------------------------------------------------------------
Bracknell News (UK) reports that a business has been fined
GBP28,000 after two subcontractors were exposed to asbestos
fibers.
Gardner Mechanical Services Ltd, of Grovelands Avenue Workshops in
Winnersh, had been contracted to upgrade a room at Reading
university but subcontracted the project to a Newbury-based
company.
They in turn subcontracted two self-employed men, Andrew Lloyd and
Steve Taylor, to do the work.
On Monday (Oct. 8), Reading Magistrates Court heard that on
Sept. 2, 2009, the two men drilled through a sprayed asbestos
ceiling coating, unaware that asbestos was in the room.
An investigation by the Health and Safety Executive (HSE) found
that as the principal contractor Gardner Mechanical Services was
aware some asbestos-containing materials were to be left on site.
However, they failed to relay this information to the
subcontractors and failed to ensure the asbestos was removed from
the site before work started.
Gardner Mechanical Services Ltd pleaded guilty to breaching
Regulation 11(1) of the Control of Asbestos Regulations 2006 and
Regulation 23(1)(a) of the Construction (Design and Management)
Regulations 2007.
It was fined a total of GBP28,000 and ordered to pay GBP22,631 in
costs.
After the hearing HSE inspector Adam Wycherley said: "This case
highlights the importance of effective planning when addressing
risks in construction, particularly in refurbishment, where there
is a higher risk of coming into contact with asbestos.
"Gardner Mechanical Services had a clear duty of care to relay
important information to its subcontractors in order to prevent
their exposure to asbestos, but this simply did not happen.
"As a result of poor planning on the part of GMS, two men were
exposed to high levels of asbestos fibers, leaving them at risk of
contracting serious diseases such as lung cancer, mesothelioma and
asbestosis of the lungs."
Peter Gardner, Director of Gardner Mechanical Services, said: "We
deeply regret the occurrence of this incident in 2009, and that
these sub-contractors were put at risk.
"Since the incident, we have carried out a full review and
overhaul of our Health and Safety procedures, including the
replacement of our Health and Safety Advisor.
"It is now a requirement that all employees and sub-contractors
working for GMS receive regular Asbestos Awareness training. The
company has put in place rigorous policies and procedures to do
everything practicably possible to avoid a re-occurrence."
ASBESTOS UPDATE: Parents Irked on Cwmcarn School Abrupt Closure
---------------------------------------------------------------
David Deans of The South Wales Argus reports that the closure of a
Valleys comprehensive school over asbestos worries is temporary
and will be resolved, its head teacher has said.
Cwmcarn High School's head teacher Jacqui Peplinski sought to
reassure parents after the school was shut on Friday, Oct. 12
while an asbestos investigation is conducted.
Parents took to the Argus website to vent their frustrations over
the short notice of the closure, with one saying it had been
handled "terribly."
On Friday, Oct. 12, Caerphilly council decided to shut the school
until further notice to safeguard the "health and wellbeing" of
Cwmcarn's 937 pupils after it received a structural report on the
school.
Ms. Peplinksi wrote on the school's website: "The school closure
is a temporary situation and the matter will be resolved."
She said staff would meet to examine the situation and prioritize
solutions for examination classes, and said the school will work
with the council over the week to discuss options.
"The learners are the heart of the school and we remain committed
to the children's education. Please note that I received the news
at 2:45 today and did not have time to write to parents," wrote
the head teacher.
She assured parents she will communicate with them via the website
and letters.
But a poster on The South Wales Argus' website, TanyaW, who has
three children at Cwmcarn High School, wrote on Friday night there
was at, that time, no information on the school's website.
"This has been handled really terribly! If alternate arrangements
are made, I hope they take into account putting siblings and
friends together," she said.
Jones-i3 wrote he was the parent of a pupil doing GCSEs and
another doing A-Levels: "Cwmcarn are very poor at communicating,
all the kids found out via Facebook, and are very worried!"
Work had been going on at the school for a while, according to
Jesswady, while LL3W80 said: "Thoroughly disgusted with the
school over this. My son literally only just found out about it
because I spotted it on Facebook."
Cwmcarn councilor Ken James said he understood the decision was
taken for the safety of children and staff: "When all said and
done, safety is paramount."
ASBESTOS UPDATE: First Meso Verdict Reached Against Hercules Inc.
-----------------------------------------------------------------
Earlier this year, a Dallas jury awarded an $8.4 million verdict
to a mesothelioma patient's widow after finding Hercules, Inc., a
subsidiary of Ashland, Inc., liable for the patient's
mesothelioma, a deadly cancer of the lining of the lung caused by
exposure to asbestos (Case No. DC10-08454-D, Civil District Court
of Dallas County, 68th, TX.). This verdict is believed to be the
first asbestos cancer or mesothelioma verdict reached against
Hercules, Inc., for exposure at the Dow Chemical, Inc., refinery
and could set a precedent for similar results in the future. The
mesothelioma lawsuit was brought on behalf of the late John
Gensler, and his widow Martha Gensler. Mesothelioma attorneys
John Langdoc -- jlangdoc@baronbudd.com -- and Alana Kalantzakis --
akalantzakis@baronbudd.com -- of the mesothelioma law firm of
Baron and Budd represented the family at trial.
Hercules is no stranger to fines and other liabilities due to its
manufacture of carcinogenic products. The company has been found
responsible for exposing U.S. military veterans to toxic
carcinogens including Agent Orange, which Hercules manufactured.
Even after the government begin requiring warning labels for
asbestos products in 1971, Hercules actively chose not to place
the warning labels on its products, according to court documents.
Mesothelioma lawyers Langdoc and Kalantzakis proved during the
trial that Hercules knew it was exposing Mr. Gensler and other
workers to dangerous asbestos-containing pipe products during the
late 1960s and early 1970s and did nothing to warn workers.
"Hercules has a history of corporate misconduct and environmental
contamination," said Langdoc. "The company insisted on using the
most carcinogenic type of asbestos available, according to court
documents. While other asbestos pipes generally contained
approximately three to five percent asbestos, Hercules' asbestos
pipes contained approximately 50 percent asbestos, an amount found
to be extremely dangerous to workers and the environment,
according to court documents."
Baron and Budd mesothelioma lawyers have been defending the rights
of mesothelioma and asbestos patients and their families for over
30 years. Our mesothelioma attorneys were some of the first to
successfully litigate a mesothelioma lawsuit. The firm has
achieved numerous precedent-setting mesothelioma verdicts
throughout its history, including a $48 million verdict in 2012
and a $55 million verdict in 2001, one of the largest in the state
of Texas.
Learn more about Baron and Budd's mesothelioma case results at
http://www.mesotheliomanews.com
About Baron & Budd, P.C.
The national mesothelioma law firm of Baron & Budd, P.C. --
http://baronandbudd.com-- has a more than 30-year history of
"Protecting What's Right" for asbestos sufferers and their
families. As one of the first law firms to successfully litigate
an asbestos lawsuit, Baron & Budd continues to actively represent
veterans, industry workers and others who are suffering as a
result of exposure to asbestos. Baron & Budd achieved the largest
mesothelioma verdict ever in the state of Texas, a $55 million
verdict for an asbestos sufferer and his family in El Paso, Texas.
Contact Baron and Budd at 1.866.855.1229 for additional
information on mesothelioma treatments, mesothelioma cancer
doctors and treatment centers and mesothelioma attorneys.
ASBESTOS UPDATE: Victims' Attorneys Back Up Warren, Group Says
--------------------------------------------------------------
According to an article by FactCheck.org, available at The
Huffington Post, Massachusetts Sen. Scott Brown and challenger
Elizabeth Warren are accusing each other of "not telling the
truth." Brown says Warren worked to "restrict payments" to
asbestos victims, while Warren says she worked to "get more money"
for them. We find Warren is correct; Brown's ad is a distortion.
FactCheck.org is a nonpartisan, nonprofit "consumer advocate" for
voters that aims to reduce the level of deception and confusion in
U.S. politics.
According to the FactCheck.org article, it may seem counter-
intuitive that Warren's work on behalf of an insurance company
that covered an asbestos manufacturer could be work on the same
side as the victims of the case. But Warren was brought in as a
bankruptcy expert on a case before the Supreme Court to secure a
$500 million trust to pay asbestos victims. As part of a
settlement that Warren worked to preserve, the insurance company
sought immunity from lawsuits in exchange for releasing the $500
million trust. Attorneys for most of the asbestos victims
supported Warren's efforts.
Here are the two narratives portrayed by the competing campaigns.
Brown's Version
In recent TV and radio ads, the Brown campaign begins with a
narrator saying, "Elizabeth Warren's not telling the truth about
her career." It then cuts to a clip of Warren saying, "I've been
out there working for people who have been injured by big
corporations."
The narrator then says, "But the [Boston] Globe says Elizabeth
Warren was a key lawyer in an asbestos case working for a big
corporation. Warren helped Travelers Insurance restrict payments
to victims of asbestos poisoning. The results were disastrous for
the victims. The insurance company saved millions. And Elizabeth
Warren got paid 40 times what they paid victims. Elizabeth
Warren's just not who she says she is."
Brown echoed those comments during a debate on Sept. 20, saying,
"You chose to side with one of the biggest corporations in the
United States: Travelers Insurance. When you worked to prohibit
people who got asbestos poisoning, and I hope all the asbestos
union workers are watching right now. She denied, she helped
Travelers deny those benefits for asbestos poisoning, made over
$250,000 in an effort to protect big corporations. There is only
one person in this debate, right now, Jon, who is protecting
corporations. She has a history of it."
"It's just not true," Warren said at the debate. "The facts speak
for themselves."
Warren's Version
Although she didn't elaborate during the debate, Warren's camp
later fired back with two ads featuring family members of victims
of mesothelioma who describe Warren as a champion of their cause.
"I've been a widow since 1990 when my husband, Sam, died of
mesothelioma," says Ginny Jackson. "He was exposed to asbestos
when he worked at the Quincy shipyard. It's a terrible, terrible
way to die. Elizabeth Warren went all the way to the Supreme
Court to try to get more money for asbestos victims and families.
Now Scott Brown is attacking Elizabeth Warren about her work.
Scott Brown is not telling the truth. He's trying to use our
suffering to help himself. He outta be ashamed."
Warren's version of the case has been publicly backed by several
attorneys representing the asbestos victims, as well as leaders of
an asbestos workers' union.
"He's flat out misrepresenting the facts," Francis C. Boudrow,
business manager for the International Association of Heat and
Frost Insulators and Asbestos Workers Union, Local No. 6 told the
Boston Globe. "It's offensive to all these people who've lost
lives" to asbestos-related illness, he said.
Warren's Work
At the heart of this issue is an ongoing asbestos case involving
the nation's largest asbestos manufacturer, Johns-Manville Corp.
The company ended up in bankruptcy, leaving some victims, who did
not develop symptoms until more than a decade after others,
seeking compensation from an ever-shrinking victims fund. By the
time Warren entered the case in 2008, more than $3.2 billion had
been paid out to over 600,000 claimants.
Warren was brought into the case by Travelers Insurance, one of
the insurers of Johns-Manville. Specifically, Warren worked on
the case Travelers v. Baily to preserve a $500 million trust from
which current and future victims would be paid -- part of a
settlement agreement previously reached between lawyers for
Travelers and the victims.
According to Warren's financial disclosure forms, Warren was hired
by Travelers in April 2008 and did work for the company through
September 2010. By that time, Travelers and the asbestos victims
were working together on a common goal: to preserve the $500
million trust both sides had agreed to. Another insurance
company, Chubb, was contesting the settlement agreement, and
Warren ended up making her one and only appearance before the
Supreme Court arguing on behalf of Travelers to uphold the trust.
As part of the deal, Travelers would be permanently immune from
future asbestos-related lawsuits concerning Johns-Manville.
Warren's argument prevailed. According to the Globe, Warren was
paid $212,000 over three years by Travelers.
So it's true, as the Brown ad says, that a Boston Globe headline
on May 1 described Warren as playing a "key role in an asbestos
court case." But the subhead of the story -- "Worked for insurer
on fund for victims" -- belies the ad's claim about her opposing
the interest of the victims.
Specifically, the ad leaves out this pivotal paragraph from the
same Globe story:
Boston Globe, May 1: Travelers won most of what it wanted from
the Supreme Court, and in doing so Warren helped preserve an
element of bankruptcy law that ensured that victims of large-scale
corporate malfeasance would have a better chance of getting
compensated, even when the responsible companies go bankrupt.
Unfortunately for the asbestos victims, the Supreme Court's
decision wasn't the final word on this case. After Warren left
the case, it took a "disastrous" turn for the victims when a lower
court issued a ruling on Feb. 29, 2012, that, as the Globe
reported, took Travelers "off the hook for paying out the $500
million settlement."
The Globe noted that according to one judge who tried to preserve
the settlement, Travelers received "something for nothing" --
immunity from future lawsuits without having to pay out the $500
million trust.
Warren has said she believes the lower court erred. The ruling is
still under appeal.
Bruce Carter, an Ohio attorney whose firm has worked on behalf of
over 19,000 claimants in the case, told us Brown has simply
mischaracterized Warren's role. The idea that Warren was working
against the interests of the victims, he said, is "not true."
"During the period she worked with Travelers, the claimants (the
victims) and Travelers were working together to do what was
necessary to get these funds approved and established," Carter
said. "We were all working together for the benefit of the
victims. We were working together toward a common goal."
The trust established through a settlement with Travelers avoided
further legal wrangling that "could have taken many, many more
years, if ever, to succeed," Carter said. In other words, he
said, the trust provided a mechanism for victims to actually get
paid.
In an interview with the Globe in May, Warren said, "The issue I
was focused on like a laser was the constitutionality of
preserving the trust, because the trust is a critical tool for
making sure that people who've been hurt have a fair shot at
compensation. Without it, millions of people who've already been
injured will get nothing, and millions more in the future will get
nothing."
How close was the relationship between Travelers and victims?
Before the Supreme Court, the attorneys representing the victims
gave Travelers' attorneys their time so they could provide a more
complete argument in favor of the settlement agreement, Carter
said.
"That tells you, we worked together toward a common goal," Carter
said. "We gave them our time to argue to the panel."
It was only after Warren left the case, he said, that Travelers
"tried to back out of the deal and try to get something for
nothing."
Another lawyer representing victims in the case, Edwin L. Wallace
with the law firm Thornton & Naumes in Boston, echoed Carter's
assessment.
"She was working for the victims," Wallace said.
"In order to pay the victims, we needed a settlement trust," said
Wallace, who has contributed to Warren's campaign. "She
represented Travelers for that argument."
Warren's work for Travelers was over by the time a lower court
ruled that Travelers would not have to pay the $500 million trust.
So no one -- including Ginny Jackson, the woman featured in the
Warren ad -- has been paid yet.
Carter and Wallace both said that -- contrary to what the Brown
campaign is now saying -- neither they nor Warren could have
foreseen the lower court ruling that let Travelers off the hook
for the $500 million trust.
And Wallace is confident that ruling will be overturned. "They
will get paid," Wallace predicted.
ASBESTOS UPDATE: Citadel Plaza Developer Gets 5 Years Probation
---------------------------------------------------------------
Lynn Horsley of The Kansas City Star reports that Bill Threatt had
a dream of transforming part of the urban core with a thriving new
shopping center at 63rd Street and Prospect Avenue.
Several years ago, that dream came crashing down through
environmental mismanagement, and it officially ended Monday,
Oct. 15, when he was sentenced to five years of supervised
probation for violating the federal Clean Air Act.
Threatt pleaded guilty in February to failing to properly remove
and dispose of asbestos from 2001 to 2006 while he oversaw
preparations for the Citadel Plaza retail project. That project
is now defunct, and the city earlier this year had to pay $15
million to settle lawsuits related to its collapse. The city is
studying how to fully clean up the property from 60th to 63rd
streets and from Brooklyn to Prospect avenues.
Threatt, 71, was emotional Monday, Oct. 15, telling U.S. District
Judge Gary Fenner how sorry he was for the toll his actions took
on his friends, his family and the community.
"It is with great humility and great regret and a lot of remorse
that my actions and inactions have caused grief," he said. "I
apologize to everyone."
Threatt's attorney, P.J. O'Connor, said that until Citadel Plaza's
collapse, Threatt was an accomplished and respected developer with
many friends and a devoted family. While his friends and family
have stood by Threatt, the case ended his career and most
importantly cost him the public's trust, O'Connor said.
Deputy U.S. Attorney Gene Porter acknowledged that Threatt had no
prior criminal history and said Threatt's remorse was obvious and
genuine. But Porter said Threatt's offense was serious.
Threatt had been president of the Community Development Corp. of
Kansas City and had a higher decision-making role than his co-
defendant, Anthony Crompton, the corporation's 42-year-old real
estate director. Crompton was sentenced in May to three years of
probation, including five months in a halfway house. Crompton and
Threatt failed to supervise the workers who demolished houses on
the site.
Fenner said most defendants who express remorse only do so because
they got caught.
"I believe you're remorseful for the right reasons," Fenner told
Threatt, adding that Threatt expressed a true recognition of the
harm he had caused.
Although he could have sentenced Threatt to at least two years in
prison, Fenner said this was a rare instance when probation was
appropriate. Fenner also said that the supervising probation
officer can direct that Threatt serve six months of that time in a
halfway house. Fenner also fined Threatt $10,000 and ordered him
to perform 250 hours of community service.
City officials say that in the aftermath of the Citadel Plaza's
collapse, they are carefully assessing the cleanup plan to make
sure they get it right. Andrew Bracker, the city's cleanup
coordinator, said that the plan should be finished by year's end.
Bracker said he hopes the cleanup will be done by April 30. The
cost is estimated at $1 million.
ASBESTOS UPDATE: LHA Director Stumps HazMat Mishandling Claims
--------------------------------------------------------------
The Mesothelioma and Asbestos Awareness Center reports that the
Executive Director of the Lowell (Massachusetts) Housing Authority
(LHA) announced that he has no reason to believe that asbestos and
lead paint were improperly removed from the 132 units in the North
Common Village housing projects during renovations that occurred
from 2008 through 2011. His announcement comes on the heels of a
similar statement by the FBI and State Inspector General's Office,
declaring that no asbestos was removed during the rehab project.
According to an article in the Lowell Sun, Housing Authority
Executive Director Gary Wallace said he was pleased by the results
of the report and not surprised. Still, others demand that
asbestos and lead paint were both present in the complex and that
asbestos abatement was done incorrectly and that the material was
disposed of improperly as well.
Wallace did indeed confirm that a private company, ATC Associates
of Woburn, Massachusetts, recently found asbestos in some of the
crawl spaces at North Common Village, but told the media that the
release of information about the findings was "for the sole
purpose of distorting and confusing the issue." He noted that he
believes certain people in the community have "various sordid
reasons" for trying to confuse and alarm the public, particularly
the residents -- past and present -- who are concerned that they
may have suffered asbestos exposure, which can cause mesothelioma
and other cancers.
But David Mitchell, ATC project manager at the Lowell complex,
confirmed that asbestos was indeed found in the soil in the crawl
spaces as well as in the areas where the pipes travel underground
from one building to the next. Based on its preliminary findings,
ATC -- which was hired by the Housing Authority -- recommended
that all soil in all the crawl spaces should be considered
contaminated with asbestos and that the general public should not
be permitted access to those areas at this time.
When Mitchell was asked by LHA Commissioner Tim Green if the
asbestos in the crawl spaces put residents and maintenance workers
at risk for asbestos exposure, Mitchell responded by telling him
that "ATC's recommendations were conservative and the asbestos
identified does not pose any threat to workers or residents."
ASBESTOS UPDATE: Newly Abated Bathurst Saleyards Open For Business
------------------------------------------------------------------
ABC News reports that the Bathurst Regional Council says a plan
for the future use of the old saleyards is being developed, now
that asbestos has been removed from the site.
It has taken almost three years to clean up the former saleyards
in south Bathurst, which was used for livestock markets from 1889
to 2009.
In 2010, it was decommissioned and an environmental assessment
found low level contamination from the septic systems.
The council developed a remediation plan for the grounds and work
at the site last year found asbestos in the cement sheeting.
The toxic fibers have now been removed, and remediation work has
finished.
An environmental hygienist has completed an inspection of the
grounds and the Bathurst Regional Council has received a site
validation report stating it is now suitable for future commercial
use.
A report will be prepared in the coming months to recommend how
the site should be used.
ASBESTOS UPDATE: Fort Lee to Grant Professional Asbestos Services
-----------------------------------------------------------------
Erik Wander of The Fort Lee Patch reports that the Fort Lee Board
of Education is set to meet for a regular business meeting. The
agenda for the meeting is highlighted by, among other items, a
resolution approving professional asbestos services at Fort Lee
School No. 1, School No. 3, School No. 4, Lewis F. Cole Middle
School and the high school for the remaining "referendum projects"
approved by Fort Lee voters in January.
If approved, Karl & Associates, Inc., will perform "asbestos
evaluation" at School No. 4 at an estimated cost of $9,620 and
"investigation and sampling" for high school and middle school lab
renovations at an estimated cost of $4,975; for window replacement
at the high school and Schools No. 1 and No. 3 at a total
estimated cost of $10,270; and for classroom renovations planned
at the middle school estimated at $4,350.
The school board is also expected to adopt the "New Jersey School
Board Member Code of Ethics," which can be found on the State of
New Jersey Department of Education's website.
School officials also announced recently that the BOE will hold a
special public work session on Monday, Nov. 5 at 7 p.m. in the
high school library. The purpose of the special public session is
"goal setting" for the 2012-2013 school year, officials said.
ASBESTOS UPDATE: HSE Asked to Investigate Cwmcarn Contagion
-----------------------------------------------------------
The BBC News South East Wales reports that all schools in Wales
must deliver reports on their asbestos levels by next week,
Education Minister Leighton Andrews has announced.
Mr. Andrews made the decision after Cwmcarn High School in
Caerphilly county closed unexpectedly because of asbestos concerns
last Friday, Oct. 12.
He called the situation at Cwmcarn difficult and said councils had
clear legal duties to do annual surveys.
He also announced that Cwmcarn will partially reopen on Friday,
Oct. 19.
Mr. Andrews said it was well known that many schools in Wales
built between the 1950s and 1980s contained asbestos.
However, asbestos did not pose a health threat if it undisturbed.
There was cross-party backing for the swift action taken by
Caerphilly council to close the school once the risk was
identified last Friday.
Opposition parties also called for the register of asbestos in
school to be made public and a plan put in place to minimize the
risk to pupils and staff.
"The health and safety of staff is of paramount importance," said
Mr. Andrews.
"Public Health Wales is providing a health-based risk assessment.
The authority is looking at a number of options to accommodate
pupils as a priority.
"There are contingency arrangements being put in place to secure
the education for those young people," Mr. Andrews added.
The council said in a statement: "We are delighted to inform
parents that Year 12 and 13 will be able to return to the school
site on Friday and should report to the Performing Arts centre at
8.30 am.
"This newest part of the school is available for use and is
separate from the rest of the school buildings.
"We will also accommodate Year 11 pupils at the site from Monday,
Oct. 22, and they should also report to the Performing Arts centre
at 8.30 am."
It was a "difficult decision" to close the school and a "range of
options" were being investigated for the other age groups.
Earlier, a teaching union said it asked the Health and Safety
Executive (HSE) to investigate the discovery of asbestos at
Cwmcarn.
The 900-pupil school was shut late on Friday after a structural
report identified the material.
Geraint Davies of NASUWT Cymru said he wanted the HSE to confirm
that correct procedures are adhered to.
The HSE said it was looking to whether there are grounds for a
full investigation.
Mr. Davies told BBC Wales on Tuesday, Oct. 16: "In simple terms
this is a health and safety matter and the Health And Safety
Executive provides independent advice on such matters.
"In view of the seriousness of what has happened at Cwmcarn it's
only fair to all concerned, be it teachers and ancillary staff,
parents and pupils and indeed the council itself, for such
independent advice to be available."
An HSE spokesman confirmed: "We are looking into the issue of
asbestos at the school. We have to see whether there are grounds
for a full investigation."
NASUWT spokesman Rex Phillips had earlier raised safety concerns,
saying high levels of the material had been found throughout the
building.
He said staff and pupils at the school could have been exposed to
airborne asbestos.
Mr. Phillips said the problem was found when a company visited the
school to carry out a survey on a boiler room.
He said the asbestos was found to be in airborne particles, with
two-thirds of the school "inoperable".
Earlier, Welsh Liberal Democrat leader Kirsty Williams called on
the Welsh government to conduct a national audit of asbestos in
schools.
"When a school of 900 pupils has had to close because asbestos was
found in airborne particles, I think that people across Wales have
a right to know if asbestos is a danger in their local school,"
she said.
Pupils at the school have been given work to do at home via social
networking sites such as Twitter.
ASBESTOS UPDATE: Fire Razes Windsor Gardens House With Toxic Fibro
------------------------------------------------------------------
Ben Hyde at The Herald Sun (Australia) reports that fire has
gutted an asbestos-clad house at Windsor Gardens.
Metropolitan Fire Service crews were called to Olinda Rd. after
reports of the fire just before 4.00 am of Oct. 17.
It took about half an hour for 16 firefighters to bring the blaze
under control.
An MFS spokeswoman said the house contained asbestos and
firefighters had to wet the material to limit particles becoming
airborne.
She said the local council had been notified of the asbestos.
No one was home at the time of the fire and damage is estimated at
AU$150,000.
Fire cause investigators found the source of the blaze to be an
electric blanket that had been left on.
In a separate incident, fire damaged a maisonette at Douglas St,
Mount Gambier, after starting about midnight.
ASBESTOS UPDATE: Funds for John Evans School Cleanup Unaccounted
----------------------------------------------------------------
Jack Minor of The Northern Colorado Gazette reports that officials
with School District 6 say the district had received funds for
asbestos abatement for schools such as John Evans some years ago
from a lawsuit, but now there is no record of the settlement or
how the funds were spent.
An elected official, who wishes to remain anonymous, says he asked
Wayne Eads, the Greeley/Evans chief operations officer, at a
Republican breakfast on Oct. 10 if the district had ever
considered applying for a federal grant to help with the cost of
asbestos removal at John Evans.
According to the official, Eads told him the district had applied
for and received funding for asbestos removal for John Evans.
When he asked Eads what happened to the funds from the grant, Eads
did not have an answer.
The official has also contacted school board member, Scott Rankin,
who said he was looking into the issue.
"This is an important issue for voters. If the district has
received any amount of money for asbestos abatement, whether a
small amount or a larger amount, the people of this district have
a right to know about it."
Theresa Myers, communications director for the district, said
Eads' statement to the official may have been referring to a class
action lawsuit the district was part of.
"Wayne recalls that in the early 1990's, there may have been a
class action lawsuit that the district was part of and that we did
receive some money for asbestos abatement, Myers said.
However, she went on to say the district has no records of where
the money went. The district has estimated it will cost $900,000
for asbestos removal from the school prior to demolition.
"There are no records of that possible settlement that we can
find, and the money was spent long ago where it was most needed at
the time. Wayne said there has been no money given to the
district for asbestos abatement in the last 15 years, probably
longer."
She went on to say the district had never received money for
asbestos abatement at John Evans.
Rankin said he acknowledges that the public has a right to be
skeptical when it comes to the financial dealing with the district
and that previous members of the school board did not do all they
could to foster a culture of transparency, but he and other
members are working hard to change that.
"I am totally about transparency, the voters should have the right
to ask any question and receive an answer."
Judy Kron, who has been on the board of education since 2005,
admitted they have done things in the past to cause voters to be
leery of anything the board says. "Frankly, there are a lot of
people in the district who just don't trust us," Kron said at a
recent board meeting.
The district is asking voters to approve 3A, a bond issue to raise
$8.2 million to meet the qualifications for an application for a
BEST grant from the state. The district has not yet received the
grant however, one of the conditions for receiving it is the
passage of the bond issue. If the grant is granted, the state
will provide approximately $21 million to pay for the cost of a
replacement school for John Evans on the west side of town.
ASBESTOS UPDATE: Chico State U Stumps Down Alleged Fibro Dangers
----------------------------------------------------------------
Pedro Quintana of The Orion reports that a Chico State faculty
member placed signs outside of Butte Hall Monday warning passers-
by of alleged health hazards inside Butte Hall.
Mark Stemen, a professor in the geography and planning department,
said he put the signs out at 10 a.m. Monday, Oct. 15, to raise
awareness of perceived asbestos dangers inside Butte Hall. The
signs, which read, "Caution: Asbestos," were later taken down.
The signs were placed after faculty members voiced concerns that
environmental conditions in Butte Hall might be connected to the
deaths of sociology professor Andrew Dick and administrative
support coordinator Tami Harder Kilpatric, both of whom worked in
the building and died from cancer this year.
Vice President for Business and Finance Lorraine Hoffman sent out
an email notifying the campus community that the building is safe
to work and study in.
Marvin Pratt, director of Chico State's department of
environmental health and safety, said he was notified of the signs
by concerned faculty members.
The department notified the Gayle Hutchinson, the dean of the
College of Behavioral and Social Sciences about the signs, Pratt
said.
Hutchinson met with faculty to assure them the building was safe,
but did not provide any evidence, said Stemen, who has an office
inside Butte Hall.
"The dangers are very real," Stemen said. "The university's
comments about the air system is a red herring meant to distract
people from the real problem."
The California Faculty Association is asking for independent
asbestos testing to be conducted, he said.
The university sent an email to the campus community explaining
that Butte Hall was safe and that there was no evidence that
either of the two deaths were connected to prolonged presence in
the building.
The university feels absolute that the building is safe, said Joe
Wills, director of public affairs and publications for Chico
State.
"There is no danger in the building," Wills said.
ASBESTOS UPDATE: Georgia Pacific, 80 Others Face Meso Lawsuit
-------------------------------------------------------------
Kyla Asbury of The West Virginia Record reports that a Rivesville
couple is suing 81 companies they claim are responsible for a
mesothelioma diagnosis.
On Aug. 9, Paul Everett Beckman, Sr., was diagnosed with
mesothelioma, according to a complaint filed Sept. 14 in Kanawha
Circuit Court.
Beckman claims he smoked one or two cigarettes per day from the
1940s until 1986, but has not since.
The defendants exposed Beckman to asbestos during his career as a
mechanic and laborer since the 1940s and through his wife, who
worked at Owens Illinois Glass Factory, and his father and
brother, who were utility workers with Consol Energy, according to
the suit.
Beckman claims the defendants are being sued based on theories of
negligence, contaminated buildings, breach of expressed/implied
warranty, strict liability, intentional tort, conspiracy,
misrepresentation and post-sale duty to warn.
Certain defendants are also being sued as premise owners and as
Beckman's employers for deliberate intent/intentional tort,
according to the suit.
Beckman and his wife, Pearl Lina Beckman, are seeking a jury trial
to resolve all issues involved. They are being represented by
Victoria Antion -- vantion@motleyrice.com -- Scott A. McGee --
smcgee@motleyrice.com -- and Steve Shaffer.
The case has been assigned to a visiting judge.
The 81 companies named as defendants in the suit are 3M Company;
A.W. Chesterton Company; Airtek, Inc.; Aurora Pump Company;
Autozone Stores, Inc.; Beazer East, Inc.; Borg-Warner Corporation;
Caterpillar Inc.; Certainteed Corporation; Clark Equipment
Company; Cleaver-Brooks Company, Inc.; Consol Energy, Inc.; Copes-
Vulcan, Inc.; Crane Co.; Dravo Corporation; Eaton Electrical,
Inc.; F.B. Wright Co. of Pittsburgh; Fairmont Supply Corporation;
Flowserve FSD Corporation; Flowserve US, Inc.; FMC Corporation;
Foster Wheeler Energy Corporation; Gardner Denver, Inc.; General
Electric Company; Genuine Parts Company; George V. Hamilton, Inc.;
Georgia Pacific Corporation; Georgino Industrial Supply
(Pittsburgh), Inc.; Goulds Pumps; Grinnell, LLC; Harvey Hubbell,
Inc.; Hercules, Inc.; Honeywell International; Howden North
America, Inc.; I.U. North America, Inc.; IMO Industries, Inc.;
Devalco Corporation; Industrial Holdings Corporation; Ingersoll-
Rand; ITT Corporation; J. H. Fletcher & Co.; Joy Technologies,
Inc.; Kelsey-Hayes Company; Lewis-Goetz And Company, Inc.;
Maremont Corporation; McJunkin Red Man Corporation; McNeil
Corporation; Metropolitan Life Insurance Company; Mine Safety
Appliances Company; Morgantown-National Supply, Inc.; Nacco
Materials Handling Group, Inc.; Nagle Pumps, Inc.; Nitro
Industrial Coverings, Inc.; Ohio Valley Insulating Company, Inc.;
Owens-Illinois, Inc.; P&H Mining Equipment, Inc.; Petroleum Pipe
and Supply Company, Inc.; Pettibone/Traverse Lift, LLC; Phillips
Corporation; Pneumo Abex Corporation; Premiere Refractories, Inc.;
Rapid-American Corporation; Riley Power, Inc.; Ritter Technology
LLC; Rockwell Automation, Inc.; Schneider Electric USA, Inc.;
State Electric Supply Company; Sterling Fluid Systems (USA), LLC;
Sunray Electric Supply Company; Tasco Insulations, Inc.; The
Goodyear Tire & Rubber, Co.; Union Carbide Chemical & Plastics
Company; Uniroyal, Inc.; United Conveyor Corporation; United
Engineers & Constructors and Washington Groups International;
Viacom, Inc.; Vimasco Corporation; West Virginia Electric Supply
Company; Yale Materials Handling Corporation; Yarway Corporation;
and Zurn Industries, LLC.
Kanawha Circuit Court case number: 12-C-1872.
ASBESTOS UPDATE: Terre Haute High School Fibro Problem Solved
-------------------------------------------------------------
WTHITV.com reports that the Vigo County School Corporation spent
its fall break fixing an asbestos problem at Terre Haute South
High School.
In September, a tile fell from Terre Haute South's auditorium
ceiling. That tile tested positive for asbestos.
School officials worked Oct. 16 to remove the asbestos.
Administrators say all of the asbestos has been cleaned up.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Copyright 2012. All rights reserved. ISSN 1525-2272.
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