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Arizona senator introduces bill to increase asbestos trust transparency
By Kali Hays
New York, May 13 - Republican senator Jeff Flake of Arizona introduced the Furthering Asbestos Claims Transparency Act Monday with the aim of preventing fraud related to asbestos bankruptcy settlement trusts, according to a press release from the senator's office.
The FACT Act comes after a court in the asbestos claims estimation trial of Garlock Sealing Technologies LLC found "widespread misconduct" on the behalf of asbestos claimants and their legal representatives.
Much of the testimony and evidence from the estimation trial was sealed at the request of Garlock's asbestos claimants committee, leading to access requests by Ford Motor Co., Specialty Products Holding Corp. and Aetna, Inc.
Bronwyn Lance Chester, senator Flake's communications director, said the bill has the support of the Chamber of Commerce.
If signed into law, asbestos bankruptcy settlement trusts would be required to disclose the names and exposure history of claimants, though the release of confidential medical information and full Social Security numbers would be prohibited.
The release cited a 2011 report from the Government Accountability Office that said 60 asbestos claims trusts established since 1988 have assets totaling about $37 billion.
"These trusts were created to compensate injured victims, but the lack of transparency and oversight of these trusts has resulted in a system where claimants can file inconsistent claims among numerous trusts or against trusts and solvent companies in the tort system," the release stated.
"Certain information about the claimants must be disclosed in order to combat abuse of the system."
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