Bankruptcy Trust Document Purge Upcoming

The W.R. Grace bankruptcy victim compensation fund says it plans to destroy thousands of documents beginning on April 15, 2025.

The purge applies to all data and documents submitted to the Trust by claimants whose claims have been paid, withdrawn, or deemed withdrawn by the Trust.

Pursuant to the Retention Policy, the Trust will only retain data and documents submitted to the Trust by the claimant for a certain time period. Upon the expiration of that period, underlying claim data and documents will be destroyed; however, the Trust will retain and not destroy the claimant’s Release, any records required for Trust purposes, or records that must be kept to comply with applicable law.

For WRG, cover-ups and purges are par for the course. At one time, Montana-based Grace & Company supplied most of the country’s vermiculite insulation. Non-toxic vermiculite is one of the most popular and most effective asbestos alternatives. However, Grace’s vermiculite was mixed with asbestos. Poor quality control practices probably started the problem. Then, when the company's higher-ups found out about it, they covered it up. 

Sooner or later, all cover-ups unravel. By 2001, some 65,000 asbestos poisoning victims had partnered with nationwide mesothelioma lawyers and filed claims. Apropos of nothing, the mediocre 1998 John Travolta legal thriller A Civil Action is based on the Grace Company's shenanigans.

After several false starts, in 2008, a federal judge approved a Chapter 11 reorganization plan that included provisions for a massive victim compensation fund. But the company’s legal woes continued, especially regarding environmental cleanup. Grace shipped asbestos-laced vermiculite all over the country, meaning that sites in almost every state became Superfund sites. Grace finally settled the last of the cost recovery lawsuits in 2011.

Environmental cleanup was just the tip of the iceberg. As mentioned, the nationwide distribution of asbestos-laced vermiculite created tens of thousands of industrial and environmental exposure victims.

Industrial asbestos exposure victims typically handled asbestos-laced products, mostly attic insulation. However, asbestos was deeply embedded in the supply chain. It was in many other products as well, such as roof tiles and drywall.

Environmental exposure victims either lived near an asbestos hot spot, like the Grace Company mine in Montana, or lived with industrial asbestos workers. Because these tiny fibers have sharp spikes, they cling to most surfaces. As a result, many workers unwittingly carried fibers home with them, where they infected friends and family members.

All categories of asbestos exposure victims can work with an asbestos exposure lawyer to get the compensation and justice they deserve.

The WRG Asbestos PI Trust is one of hundreds of bankruptcy victim compensation fund trusts. Although many of these trusts date back to the 1980s, they still contain tens of billions of dollars today.

Suing a bankrupt entity and obtaining compensation is difficult or impossible. But filing a bankruptcy VCF claim is quite easy. No opposing lawyer challenges an asbestos exposure lawyer’s evidence or legal arguments. So, a VCF claim is basically a no-fault claim.

It gets better. Many asbestos exposure victims qualify for expedited review. These claims might be finalized in a matter of months. Even bankruptcy VCF claims on the slow boat are much faster to resolve than civil claims.

Now for the bad news. Bankruptcy VCF claims are straightforward to file, and Fund Administrators quickly review them, at least in most cases. However, the lack of court supervision becomes a serious issue during settlement negotiations. Fund Administrators never have a judicially-imposed duty to negotiate in good faith. Therefore, they usually make low-ball offers, which many victims are tempted to take.

Mesothelioma victims need and deserve significant compensation. For a confidential consultation with an experienced nationwide mesothelioma lawyer, contact the Throneberry Law Group. We routinely handle these matters on a nationwide basis.