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Honeywell Asbestos Liabilities Class Action Settlement Overview:
- Who: Investors have reached a $10 million settlement agreement with Honeywell International Inc.
- Why: Settlement resolves claims Honeywell understated the amount of asbestos-related liability it was facing on account of its acquisition of Bendix Friction Materials.
- Where: The class action lawsuit was filed in New Jersey federal court.
Honeywell International Inc. has agreed to a $10 million settlement with investors to resolve claims the company understated the amount of asbestos-related liability it faced.
The settlement agreement — which investors are asking a New Jersey federal judge to approve — will allow for the recovery of around 12% of an $80.5 million in estimated damages, and includes a guarantee for “prompt payment.”
“Plaintiffs and their counsel agree that the Settlement represents a fair, adequate, and reasonable result for the Class,” states the investors motion for preliminary approval.
The 2018 claims centered around Honeywell’s 1999 acquisition of Bendix Friction Materials, an automobile brake manufacturer, caused the company to face “substantial” liabilities since Bendix produced its product with asbestos.
Investors, led by plaintiffs Charles M. Francisco, III and Iron Workers Local 580 Joint Funds, argued Honeywell misrepresented its asbestos-related liabilities as being $616 million over an “artificial five years horizon.”
Further, investors argue that, after being questioned by the U.S. Securities and Exchange Commission, Honeywell admitted its liability was actually around $1.7 billion.
“As the truth concerning Defendants’ accounting scheme came to light, Honeywell’s stock price declined significantly,” states the motion.
Honeywell also misrepresented the amount of internal control it had over public disclosures and financial reporting, investors argue.
The company previously tried to get the class action lawsuit dismissed, however, a judge denied the request, ruling investors had sufficiently alleged that it had made misstatements about its asbestos-related liabilities.
In agreeing to the settlement, Honeywell continues to deny all wrongdoing, according to the motion.
A number of popular makeup manufacturers have stopped using talc in their products after a recent study by the Food and Drug Administration found around 18% of the talc-based cosmetics it tested contained asbestos.
Were you injured financially after the true amount of Honeywell’s asbestos-related liabilities was made public? Let us know in the comments!
The plaintiff is represented by Joshua B. Silverman of Pomerantz LLP, Kim E. Miller, J. Ryan Lopatka, Lewis S. Kahn, and Craig J. Geraci Jr. of Kahn Swick & Foti LLC, and Vincent M. Giblin of DeCotiis Fitzpatrick Cole & Giblin LLP.
The Honeywell Asbestos Liabilities Class Action Lawsuit is Kanefsky v. Honeywell International Inc., et al., Case No. 2:18-cv-15536, in the U.S. District Court for the District of New Jersey.
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