State AGs Probe Asbestos Bankruptcy Trusts To Recover Medicare Payments

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March 21, 2017

The Attorney General of Utah, Sean Reyes, has sued four of the largest asbestos bankruptcy trusts in an effort to get them to comply with civil investigative demands that more than a dozen states have sent to the trusts. These demands seek information on whether the trusts are squandering money and failing to reimburse states for Medicare and Medicaid expenditures.

Along with AG Reyes,  attorneys general from 12 other states sent demand letters to the four trusts, which include Armstrong World Industries, Babcock & Wilcox, DII, and Owens Corning/Fibreboard.

According to Forbes, “Utah said they believe ‘abuse of asbestos trusts is occurring’ by plaintiff lawyers who largely oversee the court-approved funds set up to compensate people who claim injury from asbestos.”