Alabama’s Attorney General is joining colleagues from 12 other states in investigating asbestos bankruptcy trusts’ failure to pay out Medicaid payments as federal law requires, Alabama Today reported today. Lawsuits have sent more than 60 manufacturers of asbestos or asbestos-containing products into bankruptcy and have paid out more than $17 billion since 2008. 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 13 attorneys general sent demand letters to bankruptcy trusts for Armstrong World Industries, Babcock & Wilcox, DII and Owens Corning/Fibreboard back in December, and after receiving no response elected to file a civil suit in Utah this month to move forward on recovering Medicaid payments.
