Company’s Bankruptcy Filing Doesn’t Have To Prevent Lawsuits

Lawsuits over West Virginia’s chemical leak continue despite the company’s bankruptcy filing. The Charleston (WV) Gazette (2/4, White, 154K) reports that although Freedom Industries “has sought protection in bankruptcy court, that hasn’t stopped residents and business owners from filing lawsuits over the company’s Jan. 9 chemical leak into the Elk River.” The Gazette notes that none of the new lawsuits names Freedom Industries as a defendant. The company’s Chapter 11 bankruptcy filing on January 18 “means that all lawsuits against the company are put on hold. About 30 lawsuits had been filed before the bankruptcy against Freedom since the company discovered ‘Crude MCHM’ had leaked into the Elk River from one of its storage tanks and caused a water-use ban for 300,000 West Virginians. About a week later, Freedom employees disclosed that another chemical, ‘PPH,’ was also in the tank that leaked.” The Charleston (WV) Gazette (2/4, White, 154K) reports that although Freedom Industries “has sought protection in bankruptcy court, that hasn’t stopped residents and business owners from filing lawsuits over the company’s Jan. 9 chemical leak into the Elk River.” The Gazette notes that none of the new lawsuits names Freedom Industries as a defendant. The company’s Chapter 11 bankruptcy filing on January 18 “means that all lawsuits against the company are put on hold. About 30 lawsuits had been filed before the bankruptcy against Freedom since the company discovered ‘Crude MCHM’ had leaked into the Elk River from one of its storage tanks and caused a water-use ban for 300,000 West Virginians. About a week later, Freedom employees disclosed that another chemical, ‘PPH,’ was also in the tank that leaked.”

From the AAJ News Brief for John Badal of the Berks/Schuylkill Counties law firm of Liever, Hyman & Potter.  We have been successfully  representing injured Pennsylvanians since 1959.

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