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Halliburton Shares Plunge on Verdict (Dec. 2001: Trial Lawyers, Asbestos fraud, Greed)
Overlawyered.com ^ | Dec. 10, 2001

Posted on 07/16/2002 10:18:19 AM PDT by Ragtime Cowgirl

 


December 10 -- "Halliburton Shares Plunge on Verdict". The market clipped $3.8 billion off the giant oil field service company's share valuation after Peter Angelos got a $30 million jury award against it. The ruling is the fourth significant asbestos ruling against Halliburton since late October, according to Merrill Lynch ... Over the last 25 years, Halliburton has settled 194,000 asbestos claims, the company said. The average payment was about $200, according to Allen Brooks, executive director at CIBC World Markets. As of Sept. 30, the company faced 146,000 open asbestos claims and 182,000 more from a former subsidiary called Harbison-Walker." (David Koenig, AP/Yahoo, Dec. 7; Neela Banerjee, "Halliburton Battered as Asbestos Verdict Stirs Deep Anxieties", New York Times, Dec. 8). Federal-Mogul, the big auto parts maker, became the latest large bankruptcy to result from asbestos litigation with a filing two months ago (Joe Miller, "Asbestos suits hurt Fed-Mogul",  Detroit News, Oct. 2).

"In late October, a Mississippi jury ordered three firms, including oil-services giant Halliburton and manufacturer 3M, to pay six plaintiffs $25 million apiece. ...What made jaws drop was that the plaintiffs weren't even sick their X-rays just showed they stood an increased chance of getting sick. 'Most of these guys have not missed a day of work in their lives,' their lawyer said. ... To unearth new clients for lawyers, screening firms advertise in towns with many aging industrial workers or park X-ray vans near union halls. To get a free X-ray, workers must often sign forms giving law firms 40 percent of any recovery. One solicitation reads: 'Find out if YOU have MILLION DOLLAR LUNGS!'" ("Looking for some million-dollar lungs", U.S. News, Dec. 17).

Some say asbestos defendants should try to avoid angering juries by paying claims without a fight, but an attorney for power plant maker Babcock & Wilcox said an uncritical approach to claims had proved too expensive for his now-bankrupt client: "In the past, you literally filled out a form in five minutes that stated the claimant had a note from the doctor saying he was coughing and had other symptoms and showed that he worked at the site. It took five to 10 minutes to fill out the form that would routinely lead to checks for thousands of dollars." (Terry Brennan, "Firms Wary of Challenging Asbestos Claims", The Deal, Nov. 13). And battling continues in a case (see Feb. 12-13) in which B&W and other asbestos defendants have attempted to turn the tables on leading plaintiff's firms, arguing that they have violated racketeering laws by coaching clients' testimony and by threatening retaliation against companies that seek a legislative solution to the litigation morass. (Mark Hamblett, "Asbestos Companies Bring RICO Suit Against Plaintiffs' Firms", New York Law Journal, Sept. 6). This spring defendant law firms won a court order prohibiting the plaintiff companies from questioning their former, as well as their current, employees without counsel being present -- i.e., even if the former employees are eager to spill the beans they will not be allowed to do so except in the presence of someone representing their former employer. That certainly should put a chill on whistleblowing (Mark Hamblett, "Employees of Law Firms Charged With Racketeering Shielded From Interviews Without Counsel", New York Law Journal, April 11).

Plus: Dallas alt-weekly Observer, which had run some of the best journalism on the Baron & Budd client-coaching asbestos scandal, returned with a terrific follow-up in March which we've unconscionably delayed in linking (Thomas Korosec, "Homefryin' with Fred Baron", Dallas Observer, March 29). (DURABLE LINK)



Asbestos, 2002: "Saving the Crown jewels?", Jun. 26-27;
"'The Tort Mess'" (Forbes, etc.), May 13;
"Editorial-fest" (Time), Mar. 11;
"'The $200 Billion Miscarriage of Justice'" (Roger Parloff, Fortune), Feb. 18-19;
"Kaiser Aluminum bankrupt", Feb. 15-17.
2001:
"'Firms Hit Hard As Asbestos Claims Rise'", Dec. 20;
"'Halliburton shares plunge on verdict'", Dec. 10;
"Insurance market was in tailspin before 9/11", Nov. 14;
"How many lives would asbestos have saved?" (WCT)
, Sept. 17 (& Sept. 18, Sept. 25-26);
"Warren Buffett was wrong" (USG, Crown Cork & Seal), June 27;
"Columnist-fest", June 22-24 (Amity Shlaes on tobacco synergy case);
"Randomness of case assignments questioned" (S.F.), April 18;
"Reparations: take a number", Apr. 17 (& see Olson, Reason, Nov. 2000);
"'The last tycoon'" (Angelos), April 12; "Asbestos claims bankrupt W. R. Grace", April 3-4;
"GAF sues asbestos lawyers", Feb. 12-13 (& see Dec. 10);
"CBS among asbestos litigation targets", Jan. 22-23.
2000:
"Asbestos litigation destroying more companies", Nov. 27 (& Dec. 8-10: Armstrong World Industries bankrupt);
"Owens Corning bankrupt", Oct. 6-9;
"Somebody to sue" (misc. defendants), Jun. 1.See also Walter Olson, "Thanks for the memories", Reason, June 1998; and links.
Link.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; Government; News/Current Events; Politics/Elections
KEYWORDS: bankruptcy; cheney; democrats; falsewitness; politics; slander; smearcampaign; stockholders; triallawyers

1 posted on 07/16/2002 10:18:20 AM PDT by Ragtime Cowgirl
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To: Ragtime Cowgirl
Rush Limbaugh was all over the press and the RATS for their idiocy and hypocrisy on Cheney & Halliburton. I'm trying to call him and key him to one of the HUGE reasons Halliburton stock price got hammered.

Note the time and date of this article.....long after Cheney had sold his stock, under pressure from RATS and the press. Conflict of interest, ya know?

They conviently forgot that one of the main reasons the stock dropped, was NOT accounting discrepencies, but a drop in drilling and TRIAL LAWYER attacks against a Halliburton subsidiary.

Trial Lawyers of course being the #1 RAT contributor.

2 posted on 07/16/2002 10:38:20 AM PDT by BOBTHENAILER
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To: BOBTHENAILER
Is the press/Dems.' current focus on corporate "scandal" really about lining the pockets of the "big DNC donor" trial lawyers (all those angry stockholders) while hurting the "pro-tort reform" President (along with the Republican party as the economy is driven downward by the Dem. fearmongering)? Is it an election year. Yes. Has anything else worked for the Democrats. No.

Where's the concern for the "little people" hurt by the resulting bankruptcy and/or decline of our corporations? Do the innocent stockholders count less than the trial lawyers and Democrat beneficiaries who line their pockets at the expense of these victims?

What about the products these companies made? Products that saved lives and made our lives better are no longer being made...like the asbestos spray that experts claim may have prevented the collapse of the WTC towers.

The trial lawyers have called themselves the fifth branch of the US government. When we're lenient on our enemies to protect our nation from trial lawyers who would leak classified US info to save a mass murderer, when trial lawyers look at our industries, our consumer markets and see $$$$ without any concern or accountability for the consequences of their greed...it's time to kick these greedy unelected trial lawyers out of OUR courtrooms.

3 posted on 07/16/2002 11:37:09 AM PDT by Ragtime Cowgirl
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Asbestos is Gold for theTrial Lawyers, May '02:

America's top asbestos producer, Johns Manville, was forced into bankruptcy in 1982. By 1992, Lloyds of London was averaging nearing $3 billion a year in losses, due mostly to asbestos claims.

Asbestos litigation has pushed at least 54 companies into bankruptcy, and judgments are often imposed with little regard for proof of wrongdoing or causation. Encouraged by porous legal standards, asbestos attorneys have filed claims for more than 1.4 million persons, against more than 1,400 companies.

In 2000, the four major companies sent into bankruptcy by asbestos were Armstrong World Industries (construction products), Babcock & Wilcox (boilers), Burns and Roe (engineering and construction), and Pittsburgh Corning (glass insulation). In 2001, asbestos litigation casualties included the chemical and materials giant W.R. Grace, the prominent construction materials company G.A.F., the gypsum wallboard maker USG, and the auto-parts maker Federal-Mogul.

Just in the past six months, Fortune 500 victims of the asbestos litigation monster have seen sudden drops in their stock prices. Hit with a Texas-sized verdict last December, Halliburton stock abruptly dropped 43 percent.

Scams, Scalawags, and an all-too-gullible Public...famous frauds sold to America ,backhoe's DUBOB links.
Who's Being Burned by Asbestos Lawsuits?
The Job Eating Asbestos Blob
Halliburton stock hits 15-year low amid asbestos liability worriesAP, Jan. '02.

4 posted on 07/16/2002 11:38:10 AM PDT by Ragtime Cowgirl
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To: Ragtime Cowgirl
Is the press/Dems.' current focus on corporate "scandal" really about lining the pockets of the "big DNC donor" trial lawyers (all those angry stockholders) while hurting the "pro-tort reform" President (along with the Republican party as the economy is driven downward by the Dem. fearmongering)?

You make some very good points. The notion that the RATS are the party of the little guy is so much BS. They sell out the black inner city kids and keep vouchers out of the education bill, for the milk and honey of NEA union cash.

They sell out small farmers and give the vast majority of the Farm Bill to the wealthy agra farms or wealthy non-farmer acreage owners.

They claim to "fight for the lower & middle" classes, while they hop on corporate jets to go to their latest conference.

They sell out women across the board, while they turn a blind eye to a sexual abuser and rapist who happen to be their leader.

They sell out rank & file union members by killing ANWR, which could have delivered some 750,000 union jobs, not to mention strengthen our economy by stabilizing energy prices, not to mention alieviated oil blackmail by the middle eastern producers.

They sell out national security by fighting any defense spending, in favor of social welfare programs.

Sorry, got a little riled up.

5 posted on 07/16/2002 12:00:38 PM PDT by BOBTHENAILER
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To: BOBTHENAILER
The entire asbestos thing is a lawyers disease. Of the thousands of claims that have been filed against us by plasterers and hod carriers when they put in for their union retirement I don't know of one that actually had lung problems.

If anyone should be damaged from it it would be me having breathed hundreds of pounds of dry asbestos fines between 30 and 40 years ago and I have no ill effects from it. It's nothing but crap science and greedy lawyers.

6 posted on 07/16/2002 3:26:29 PM PDT by dalereed
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To: dalereed
"...crap science and greedy lawyers" bttt!
7 posted on 07/16/2002 3:30:20 PM PDT by headsonpikes
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To: dalereed
I don't know of one that actually had lung problems.

I figured as much. One of these days we're gonna wake up and put an end to this crap.

8 posted on 07/16/2002 6:40:59 PM PDT by BOBTHENAILER
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