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January 26th, 2008
A major auto parts supplier has agreed to a large settlement for 7,500 asbestos claims against the company. The settlement was offered as a way to expedite the claims process so the company can continue with its Chapter 11 bankruptcy.
Dana Corporation, an Ohio based auto parts distributor, has offered more than $2 million to settle more than 7,500 asbestos claims against the company. The company offered the settlement as a means to expedite the resolution of the claims, so the company can continue with its plan to come out of Chapter 11 bankruptcy. Dana Corp indicated that the bankruptcy filing had nothing to do with the pending asbestos claims against the company, but that the pending trials could slow the process of implementing its bankruptcy-restructuring plan.
Dana Corp also stated that many of the cases pending against the company stems from people that have not yet become sick with asbestos related diseases, such as mesothelioma. Claimants will need to provide documentation proving a sickness and exposure to the car parts made by Dana. Drive shafts, axles and brake pads are among the car parts produced by the company that are known to contain asbestos, a material known to lead to types of cancer, most notably mesothelioma.
