Alabama Joins Dozen States in Asbestos Bankruptcy Trust Investigations

March 28, 2017

Alabama’s Attorney General, Steve Marshall, is joining colleagues from 12 other states in investigating asbestos bankruptcy trusts’ failure to pay out Medicaid payments as federal law requires, writes Alabama Today.

The attorneys general claim that the bankruptcy trusts, which are often overseen by plaintiff lawyers, are not giving Medicare and Medicaid their fair due when making payments to claimants.

The AG’s filed a suit in Utah earlier this month against the claims, writing that plaintiffs’ attorneys are abusing the asbestos trusts and that they are injuring states “by improperly draining the trust assets, precluding future legitimate claimants from relying on asbestos trusts, and leaving states with the high cost associated with asbestos-related disease.”

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