Saint-Gobain Sued in Attack on Texas Two Step Bankruptcy (1)

Industrial glassmaker Cie de Saint-Gobain was accused in a new lawsuit of fraudulently moving around its assets to avoid paying people harmed by asbestos, a cancer-causing substance used by an American affiliate of the company.

A committee of asbestos victims filed the case as part of the bankruptcy of DBMP, a shell company created by Saint-Gobain and its U.S. building materials unit, CertainTeed. In the lawsuit, the committee accuses Saint-Gobain of setting up DBMP to insulate itself from liability claims by people who can prove they were harmed by the company’s products.

The case is the latest attack ...