Jeff Worden, spokesman for PPG Industries, stated on 24 January that the company does not believe it has any liability for asbestos-related liabilities incurred by Pittsburgh Corning, despite the fact…
Jeff Worden, spokesman for PPG Industries, stated on 24 January that the company does not believe it has any liability for asbestos-related liabilities incurred by Pittsburgh Corning, despite the fact that the US supplier of automotive and flat glass holds 50% of the stock at Pittsburgh Corning. Worden“s comments came after the Ohio Eighth District Court of Appeals on 10 January affirmed a US$ 1.6-million jury verdict, first awarded in 2000, that an Ohio man died in 1998 as a result of prolonged exposure to asbestos-containing pipe insulation manufactured by Pittsburgh Corning. “Shareholders generally are not responsible for liabilities of the companies they invest in,” Worden said. Jim Restivo, partner, of Reed Smith, the outside law firm representing Pittsburgh Corning, said he agreed with Worden“s assessment. The verdict placed additional concerns about the ability of Pittsburgh Corning, already in Chapter 11 bankruptcy, to withstand the effects of an estimated 100,000 asbestos-related lawsuits still pending, and the liabilities of PPG and Corning Glassworks, which each own half stake in Pittsburgh Corning. Worden noted that of all the asbestos-related lawsuits filed against Pittsburgh Corning, only one had found PPG even “partially responsible,” and that PPG is appealing that case. On 9 January, the day before the appeals court upheld the verdict, PPG“s stock closed at US$ 52.74. The price was US$ 47.02 as of mid-day trading Thursday. Worden said PPG has taken a US$ 35-mil charge to write off all of its shares in Pittsburgh Corning, meaning that on PPG“s balance sheet its value in Pittsburgh Corning is zero.