Federal-Mogul Corporation

Federal-Mogul’s History With Asbestos

Federal-Mogul’s asbestos exposure risks came largely from acquisitions of companies that made asbestos-containing products. In 1998, it purchased Fel-Pro, a manufacturer of gaskets and seals with asbestos ingredients, and Turner & Newall, Europe’s largest producer of asbestos-based construction materials, brake pads and bearings.

The company grew rapidly in the 1990s, but the asbestos liabilities tied to these acquisitions created financial strain. By 2001, Federal-Mogul filed for Chapter 11 bankruptcy protection to address current and future claims. The company emerged in 2007 after restructuring and creating an asbestos trust fund to compensate people exposed to asbestos through its acquired businesses.

Federal-Moghul Forms an Asbestos Trust Fund

The Federal-Mogul Asbestos Personal Injury Trust was created in 2007 to handle current and future asbestos claims. Many lawsuits named Federal-Mogul as a defendant after it acquired asbestos companies Fel-Pro and Turner & Newall. 

Federal-Mogul filed Chapter 11 bankruptcy in 2001 after facing mounting mesothelioma lawsuits. It emerged from bankruptcy in 2007 and established the trust to protect claim funds. The trust has two sub-funds: the T&N Subfund for Turner & Newall claims and the FMP Subfund for all other claims. 

As of 2025, the T&N Subfund pays 3.9% of scheduled value for both Expedited Review and Individual Review claims, while the FMP Subfund pays 12.2% for both. In 2018, Tenneco acquired Federal-Mogul for $800 million in cash, roughly $30 million in shares, and assumption of debt.

Asbestos Lawsuits Against Federal-Mogul

When Federal-Mogul filed for bankruptcy, it had more than 156 subsidiaries and affiliates. Many of these faced asbestos lawsuits, totaling nearly 350,000 individual claims.

When it acquired Turner & Newall, Federal-Mogul set aside about $2.1 billion to cover asbestos-related claims, but it wasn’t enough. Federal-Mogul has said Turner & Newall was the main reason for its bankruptcy, but its subsidiary Flexitallic Gasket Company has been the most frequently named defendant in recent asbestos lawsuits.

In 2001, a jury awarded $35.2 million to 22 former Texaco workers for exposures to asbestos at the Texaco refinery between the 1940s and 1970s. These workers handled Flexitallic asbestos gaskets and later developed asbestosis. Former owners of Flexitallic, U.S. Gypsum Co. and Gasket Holdings, paid $1.6 million for each worker.

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Federal Mogul Asbestos Products & Occupations at Risk

Federal-Mogul Corporation’s main manufacturing operations generally didn’t involve asbestos. The company’s asbestos liability came from acquiring other businesses that made asbestos-contaminated building materials.

Products that contained asbestos included automotive friction products such as brake pads and gaskets. Anyone who worked with asbestos products from Federal-Mogul, Turner & Newall, Flexitallic Gasket Company or other related companies may face the risk of developing mesothelioma or another asbestos-related illness.

Higher-risk occupations include construction workers, mechanics, shipyard workers, refinery workers and refractory plant workers. Employees who made products for asbestos-related companies that Federal-Mogul acquired may also have been exposed to asbestos hazards. They often worked directly with asbestos-containing materials and operated machines that had asbestos parts.