Did Company Execs Try to Hide Funds from Mesothelioma Plaintiffs?
The executives of an asbestos company facing thousands of mesothelioma lawsuits have been accused of trying to avoid paying claims to victims by improperly transferring company assets to family members. The Nash Engineering company is facing two cases filed against it by the company’s bankruptcy trustee.
Bankruptcy Trustee’s Claim Involves Mesothelioma Plaintiffs
After manufacturing asbestos-containing pumps, pulps, and papers, The Nash Engineering Company has been named in thousands of personal injury lawsuits accusing it of causing victims’ malignant mesothelioma and other asbestos-related diseases. The company filed for Chapter 7 bankruptcy protection in October 2021 and was assigned a bankruptcy trustee.
After reviewing the company’s assets and financial activities, the trustee filed two lawsuits accusing its executives of a plot to avoid paying claims to mesothelioma and asbestos plaintiffs. George I. Roumeliotis says that the executives concealed transfers of assets to their family members and their trusts. He filed suit to undo those transfers and return the funds to the company so that creditors could be properly reimbursed.
Asbestos Pump Company Named in Thousands of Mesothelioma Lawsuits
With over 1,600 mesothelioma claims pending, The Nash Engineering Company filed for Chapter 7 bankruptcy, but according to its bankruptcy trustee, they did so after improperly transferring $59.7 million to stockholders. The trustee is seeking a court ruling to allow him to return the assets to the company for sale or distribution benefitting creditors.
In response to the trustee’s claims, the asbestos company executives filed a motion asking the court to dismiss the two cases, arguing that they had been filed too late and that they had no fiduciary duty to inform mesothelioma victims or other asbestos claimants that they had transferred funds to their family members and others. This request was denied by the judge. Similarly, the trustee’s lawsuit asking for the transfers to be undone will also be allowed to move forward.
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