Dana Corporation, a supplier of auto parts, has announced that it will pay 7,500 personal injury claimants a total of $2 million to resolve their lawsuits stemming from asbestos-laden gaskets produced by the company.

According to an Associated Press article, in papers filed Friday with the U.S. Bankruptcy Court in Manhattan, Dana referred to the settlement as a “reasonable and expedient way” to resolve the claims without litigation.

The company, which makes axles, drive shafts, and other auto parts, entered Chapter 11 bankruptcy in March 2006. The article notes that Dana is trying to “exit bankruptcy protection under a reorganization plan that calls for unsecured creditors to recover between 72 percent and 86 percent on their claims.”

As of June 2007, the company was faced with more than 150,000 asbestos-related personal injury claims awaiting resolution. Dana lawyers state that many of the claimants aren’t even sick and only about seven percent of all the claims involve individuals with mesothelioma, a cancer for which the only known cause is asbestos exposure.

“The vast majority of cases filed against Dana do not involve any of Dana’s products and ultimately are dismissed,” the company said. The asbestos claims “were neither a significant factor in Dana’s decision to file its Chapter 11 case nor a driving force in the Chapter 11 proceedings.”

“The latest settlement, which will cost a maximum $2 million if all claimants can submit the required proof to support their claims, will resolve about 7 percent of the mesothelioma claims and 4 percent of the [other] cancer claims filed against the parts supplier,” the article points out.

This entry was posted on Tuesday, October 30th, 2007 at 3:06 pm and is filed under Asbestos Exposure. You can follow any responses to this entry through the RSS feed. Responses are currently closed, but you trackback from your own site.