Update 5: W.R. Grace Accused of Hiding Cancer Risk
02.07.2005, 06:19 PM
W.R. Grace and Co. and seven high-ranking employees knew a Montana mine was releasing cancer-causing asbestos into the air and tried to hide the danger to workers and townspeople, according to a federal indictment unsealed Monday. More than 1,200 people became ill, and some of them died, prosecutors said.
The asbestos was naturally present in a vermiculite mine operated by Grace in the small town of Libby for nearly 30 years.
The federal grand jury said that top Grace executives and managers kept secret numerous studies spelling out the risk the cancer-causing asbestos posed to its customers, employees and Libby residents.
The indictment also accused Grace and Alan Stringer, former manager of the now-closed mine, of trying to obstruct efforts by the U.S. Environmental Protection Agency to investigate the extent of asbestos contamination in the Libby area beginning in 1999. Additional charges in the indictment include wire fraud and violating the federal Clean Air Act.
"A human and environmental tragedy has occurred in Libby. This prosecution seeks to hold Grace and some of its executives responsible for the misconduct alleged in this indictment," Bill Mercer, the U.S. attorney for Montana, said at a news conference in Missoula.
Lori Hanson, a special agent with the Environmental Protection Agency, called the allegations against Grace and its executives "one of the most significant environmental indictments in our history."
http://www.forbes.com/technology/ebusiness/feeds/ap/2005/02/07/ap1810687.html