Anglo American PLC, ESAB Corp. and Billionaire Mohed Altrad to Stand Trial for Cape Asbestos Liabilities
A South Carolina court has set a trial date of Feb. 3, 2025, to determine if Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB), and billionaire Mohed Altrad are responsible for billions in asbestos liabilities. The case stems from Cape Asbestos' distribution of asbestos to U.S. companies. A court-appointed receiver filed suit in June 2023 against these entities for unjust enrichment and responsibility for Cape's actions. ESAB is alleged to be the ultimate parent company of entities controlling Cape, while Anglo American owns 85% of De Beers. Mohed Altrad, convicted of bribery in France, is identified as Cape's current majority shareholder through Altrad Group. The case highlights decades of alleged avoidance of harm caused by Cape's asbestos, which is known to cause fatal cancers.
Un tribunal della Carolina del Sud ha fissato una data di processo per il 3 febbraio 2025 per determinare se Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB) e il miliardario Mohed Altrad siano responsabili di miliardi in passività legate all'amianto. Il caso deriva dalla distribuzione di amianto da parte di Cape Asbestos a compagnie statunitensi. Un curatore nominato dal tribunale ha intentato causa a giugno 2023 contro queste entità per arricchimento ingiustificato e responsabilità per le azioni di Cape. Si sostiene che ESAB sia la società madre ultimativa delle entità che controllano Cape, mentre Anglo American detiene l'85% di De Beers. Mohed Altrad, condannato per corruzione in Francia, è identificato come l'attuale azionista maggioritario di Cape attraverso il Gruppo Altrad. Il caso mette in luce decenni di presunto evitamento dei danni causati dall'amianto di Cape, noto per provocare tumori letali.
Un tribunal de Carolina del Sur ha establecido una fecha de juicio para el 3 de febrero de 2025 para determinar si Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB) y el multimillonario Mohed Altrad son responsables de miles de millones en pasivos relacionados con el asbesto. El caso se origina en la distribución de asbesto de Cape Asbestos a empresas estadounidenses. Un receptor designado por el tribunal demandó en junio de 2023 a estas entidades por enriquecimiento injusto y responsabilidad por las acciones de Cape. Se alega que ESAB es la empresa matriz última de las entidades que controlan a Cape, mientras que Anglo American posee el 85% de De Beers. Mohed Altrad, condenado por soborno en Francia, es identificado como el actual accionista mayoritario de Cape a través de Altrad Group. El caso destaca décadas de presunta elusión de los daños causados por el asbesto de Cape, conocido por causar cánceres mortales.
사우스캐롤라이나 법원이 2025년 2월 3일의 재판 날짜를 설정하여 Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB) 및 억만장자 Mohed Altrad가 석면 관련 수십억 달러의 책임이 있는지를 판별할 예정입니다. 이 사건은 Cape Asbestos가 미국 기업에 석면을 배급한 것에서 비롯됩니다. 법원에서 임명된 수탁자가 2023년 6월에 이들에 대해 부당 이익 및 Cape의 행동에 대한 책임을 이유로 소송을 제기했습니다. ESAB는 Cape를 관리하는 엔티티의 궁극적인 모회사로 지목되고 있으며, Anglo American은 De Beers의 85%를 소유하고 있습니다. 프랑스에서 뇌물수수로 유죄 판결을 받은 Mohed Altrad는 Altrad Group을 통해 Cape의 현재 주요 주주로 확인됩니다. 이 사건은 Cape의 석면으로 인한 피해를 수십 년 동안 회피했다는 주장을 부각시키며, 이는 치명적인 암을 유발하는 것으로 알려져 있습니다.
Un tribunal de Caroline du Sud a fixé une date de procès au 3 février 2025 pour déterminer si Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB) et le milliardaire Mohed Altrad sont responsables de milliards de passifs liés à l'amiante. L'affaire provient de la distribution d'amiante par Cape Asbestos à des entreprises américaines. Un séquestre nommé par le tribunal a intenté une action en justice en juin 2023 contre ces entités pour enrichissement injustifié et responsabilité concernant les actions de Cape. Il est allégué qu'ESAB est la société mère ultime des entités contrôlant Cape, tandis qu'Anglo American détient 85 % de De Beers. Mohed Altrad, condamné pour corruption en France, est identifié comme l'actionnaire majoritaire actuel de Cape par l'intermédiaire du groupe Altrad. Le cas met en lumière des décennies d'évitement présumé des dommages causés par l'amiante de Cape, qui est connu pour provoquer des cancers mortels.
Ein Gericht in South Carolina hat ein Gerichtsdatum für den 3. Februar 2025 festgelegt, um zu bestimmen, ob Anglo-American, PLC (OTCQX: NGLOY), ESAB Corp. (NYSE: ESAB) und der Milliardär Mohed Altrad für Milliarden an Asbestverbindlichkeiten verantwortlich sind. Der Fall stammt von der Verteilung von Asbest durch Cape Asbestos an US-amerikanische Unternehmen. Ein gerichtsbestellter Verwalter reichte im Juni 2023 Klage gegen diese Entitäten wegen ungerechtfertigter Bereicherung und Verantwortung für die Handlungen von Cape ein. ESAB wird als das Mutterunternehmen der Entitäten angesehen, die Cape kontrollieren, während Anglo American 85 % von De Beers besitzt. Mohed Altrad, der in Frankreich wegen Bestechung verurteilt wurde, wird als derzeitiger Mehrheitsaktionär von Cape durch die Altrad Group identifiziert. Der Fall hebt Jahrzehnte der angeblichen Vermeidung von Schäden hervor, die durch Asbest von Cape verursacht wurden, das bekannt dafür ist, tödliche Krebserkrankungen zu verursachen.
- None.
- ESAB faces potential billions in asbestos liabilities
- ESAB alleged to be ultimate parent company of entities controlling Cape Asbestos
- Trial set for Feb. 3, 2025, to determine ESAB's responsibility for asbestos-related damages
- ESAB accused of unjust enrichment and responsibility for Cape Asbestos' actions
- Potential financial impact on ESAB if found liable in the lawsuit
Insights
This lawsuit against ESAB Corp. and other defendants over asbestos liabilities poses significant financial and reputational risks. The February 2025 trial date gives investors time to assess potential impacts, but uncertainty remains high. Key points:
- ESAB is alleged to be the ultimate parent/successor to companies that controlled Cape Asbestos
- Claims include unjust enrichment and responsibility for Cape's actions
- Potential liabilities could be in the
billions of dollars - Judge noted allegations of "a remarkable system of avoiding harm" over decades
The case's complexity, involving multiple high-profile defendants and historical asbestos liabilities, suggests a protracted legal battle. Investors should monitor developments closely, as the outcome could significantly impact ESAB's financial position and future operations. The company may need to increase legal reserves or face substantial settlements/judgments if found liable.
This legal case presents a material financial risk for ESAB Corp. With a market cap of
- Potential need for increased legal reserves, impacting earnings
- Risk of large settlements or judgments affecting cash flow
- Possible long-term drag on profitability if found liable
- Uncertainty may lead to increased volatility in stock price
Investors should closely examine ESAB's financial disclosures related to this case and assess the company's ability to absorb potential liabilities. The outcome could affect dividend policies, capital expenditures and overall financial flexibility. While the trial is set for 2025, the market may price in risk premiums earlier as more information becomes available.
A court-appointed receiver in June 2023 filed suit against numerous entities including Anglo American and ESAB for various causes of action, including unjust enrichment and that the defendants were responsible for the actions of Cape. The receiver was appointed after Cape failed to answer the underlying lawsuit brought by the national trial litigation firm of Dean Omar Branham Shirley, LLP.
Judge Jean Toal, in an order issuing sanctions against the defendants for failure to answer discovery, noted that the receiver’s complaint “alleged a remarkable system of avoiding the harm caused by Cape’s asbestos over a period of decades ...”
Historical documents created by Cape acknowledged that it provided the vast majority of amosite asbestos, an extraordinary toxin universally agreed to cause fatal cancers, including mesothelioma and lung cancer, to companies in
Defendant ESAB is alleged to be the ultimate parent company and successor in interest to Charter Consolidated, Ltd., and Central Mining & Investment Corporation, Ltd., which are alleged to have controlled the majority of shares in Cape and controlled and directed its operations.
Similarly, Anglo American, PLC, the owner of
Mohed Altrad, the French-Syrian founder and president of the Altrad Group, is an individual defendant. He is identified as the majority shareholder and founder of Altrad Entities, which now owns and controls Cape. According to a December 12, 2022 report in Forbes, Mr. Altrad was convicted by a French court of bribery, influence peddling and misuse of corporate assets.
The 2023 Altrad Group annual report notes that, “When Altrad acquired Cape in 2017, the acquired business had well-disclosed outstanding claims related to the manufacture and distribution in the mid twentieth century and the resulting damaging health consequences of exposures...Looking forward, the company is actively looking for opportunities to support victims of mesothelioma through a range of initiatives.”
The case is Cape, PLC, individually and successor in interest to Cape Asbestos Company Limited, by and through its duly appointed receiver, Peter D. Protopapas v. Anglo American PLC, et. al., case number 2020-CP-4001759 in the Court of Common Pleas, Fifth Judicial Circuit.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241011286498/en/
Mark Annick
800-559-4534
mark@androvett.com
Source: Dean Omar Branham Shirley, LLP
FAQ
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