Private equity firms are quietly acquiring asbestos liability claims, leaving victims to suffer as Wall Street profits from delaying or denying compensation.
Helen Santoro reports for The Lever.
In short:
- Private equity firms are buying companies' asbestos liabilities, allowing them to manage large pools of cash with minimal oversight.
- By delaying or denying asbestos-related claims, these firms turn a profit from the interest accrued on the cash reserves.
- Legal tactics like the "Texas two-step" may help these firms avoid paying future claims, leaving asbestos victims without recourse.
Key quote:
“The companies that exposed people to asbestos are finding ways to evade having to pay for the harms that they have caused down the road.”
— Michael Shepard, Boston-based attorney
Why this matters:
Financial firms, driven by profit rather than justice, are snapping up claims at a discount, betting on turning a hefty profit. But this financial maneuvering threatens to complicate and lengthen the already arduous process for victims seeking redress. Read more: The very slow road to banning asbestos.
