Honeywell Must Face Suit Over Asbestos Liability (Corrected)

Honeywell International lost its bid to dismiss a putative securities class action over asbestos liability statements, after a federal district court in New Jersey held Monday the investors adequately alleged it concealed material information about its nearly $1.7 billion liability.

A class of Honeywell shareholders said the company made misleading statements and omissions regarding liabilities from its acquisition of Bendix Friction Materials, which used asbestos to manufacture automobile brakes.

The class adequately alleged scienter, the U.S. District Court for the District of New Jersey said, and showed that they suffered losses as a result of corrective disclosures regarding the value ...