RPM International Inc., a multinational holding company, agreed to contribute $797.5 million to a trust for present and future asbestos personal injury claims. The payment will be made over the course of four years, in annual installments of $450 million, $102.5 million, $120 million, and $125 million, respectively.
RPM International’s subsidiaries include manufacturers and marketers of industrial materials, such as paint, sealants, adhesives, and building supplies. The personal injury claims that will be awarded by the trust stemmed from products manufactured by Bondex International, Inc., one of RPM’s subsidiaries.
“We have been able to reach a settlement on acceptable terms that will resolve the Bondex-related asbestos liability,” said RPM’s chairman and CEO, Frank Sullivan. “[This agreement] will allow RPM to move forward and put this chapter in our history behind us.”
Asbestos, once considered a miracle mineral, was used in many industries until its ban in the 1970s. When asbestos is friable, it can easily be broken apart, creating a toxic dust that is detrimental to respiratory health. For example, asbestos exposure is the primary cause of mesothelioma, a type of cancer that has an extremely low survival rate. Each year, there are approximately 3,000 mesothelioma diagnoses made. Because of the large amount of lawsuits related to asbestos exposure, trusts like the one created by RPM’s agreement are designed to award victims of mesothelioma or their families whenever a company is deemed liable.