Asbestos Lawsuits Prompt Vanderbilt Minerals to File Bankruptcy

Vanderbilt Minerals, which mines materials used in industrial products, filed for bankruptcy after its cash flow was overwhelmed by an increase in lawsuits that accuse the company of once selling items contaminated by asbestos.

The firm, which denies that its products contained the cancer-causing substance, plans to hold an auction for its assets, according to a court filing Monday. The opening offer would be $50 million from Commodore Materials.

Vanderbilt, in the documents, blamed its bankruptcy on more than 1,400 talc lawsuits. The Norwalk, Connecticut-based company spent $8 million on talc-related cases last year. The firm “was cash-flow positive ...