Anglo American PLC, ESAB Corp. and Billionaire Mohed Altrad to Stand Trial for Cape Asbestos Liabilities
A South Carolina court has set a trial date of Feb. 3, 2025, to determine whether Anglo-American, PLC (OTCQX:NGLOY), ESAB Corp. (NYSE:ESAB) and billionaire businessman Mohed Altrad, among others, can be held responsible for billions of dollars of liabilities stemming from asbestos that Cape Asbestos sent to companies in the United States and South Carolina for decades.
A court-appointed receiver in June 2023 filed suit against numerous entities including Anglo American and ESAB for various causes of action, including unjust enrichment and that the defendants were responsible for the actions of Cape. The receiver was appointed after Cape failed to answer the underlying lawsuit brought by the national trial litigation firm of Dean Omar Branham Shirley, LLP.
Judge Jean Toal, in an order issuing sanctions against the defendants for failure to answer discovery, noted that the receiver's complaint "alleged a remarkable system of avoiding the harm caused by Cape's asbestos over a period of decades ..."
Historical documents created by Cape acknowledged that it provided the vast majority of amosite asbestos, an extraordinary toxin universally agreed to cause fatal cancers, including mesothelioma and lung cancer, to companies in the United States for decades.
Defendant ESAB is alleged to be the ultimate parent company and successor in interest to Charter Consolidated, Ltd., and Central Mining & Investment Corporation, Ltd., which are alleged to have controlled the majority of shares in Cape and controlled and directed its operations.
Similarly, Anglo American, PLC, the owner of 85% of De Beers, its diamond mining and jewelry subsidiary, is also a defendant in the matter.
Mohed Altrad, the French-Syrian founder and president of the Altrad Group, is an individual defendant. He is identified as the majority shareholder and founder of Altrad Entities, which now owns and controls Cape. According to a December 12, 2022 report in Forbes, Mr. Altrad was convicted by a French court of bribery, influence peddling and misuse of corporate assets.
The 2023 Altrad Group annual report notes that, "When Altrad acquired Cape in 2017, the acquired business had well-disclosed outstanding claims related to the manufacture and distribution in the mid twentieth century and the resulting damaging health consequences of exposures...Looking forward, the company is actively looking for opportunities to support victims of mesothelioma through a range of initiatives."
The case is Cape, PLC, individually and successor in interest to Cape Asbestos Company Limited, by and through its duly appointed receiver, Peter D. Protopapas v. Anglo American PLC, et. al., case number 2020-CP-4001759 in the Court of Common Pleas, Fifth Judicial Circuit.
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