The Asbestos Alliance | How This Affects You

Since the 1970s, companies have paid an estimated $70 billion in settlements and legal costs related to asbestos litigation. To date, more than 70 companies have filed for bankruptcy. And there is no end in sight — claims could continue for another fifty years, with estimates of total liability as high as $265 billion. The financial impact of what the Supreme Court termed the "elephantine mass" of asbestos litigation has a far-reaching effect, leaving many in its wake. These include:

ASBESTOS VICTIMS: Bankruptcies have delayed and reduced the amount paid to those who are sick from asbestos-containing products and their families to as low as pennies on the dollar. Unless the system is changed, resources available to pay future claims to the sick will be in serious jeopardy.

EMPLOYEES: Asbestos bankruptcies have cost 60,000 workers their jobs and $200 million in lost wages. Some employees' 401(k) funds have shrunk an average of 25%.

RETIREES: Many retirees depend on company stock and dividends for income. Diminished stock value has an immediate impact.

SHAREHOLDERS AND BONDHOLDERS: Stocks of some defendant companies have seen exponential decreases in value. One company eliminated its dividend to conserve cash to pay asbestos claims.

VENDORS AND CUSTOMERS: When companies are litigated into bankruptcy, vendors, suppliers and service providers lose critical business and may not even get paid for goods and services provided. Some vendors may have their operations disrupted and could shut down.