A New Jersey judge has ruled that Congoleum's insurance carriers don't have to fund a $500 million settlement with the company's asbestos claimants because it was a bad-faith deal engineered by lawyers acting collusively. The settlement had been the centerpiece of a prepackaged Chapter 11 petition designed to protect the company from claims arising from its use of asbestos before 1983. But the judge ruled that the settlement was not reasonable because it was reached without the consent of the insurers.
Faulting Lawyers, N.J. Judge Voids Congoleum's Pact With Asbestos Claimants
New Jersey Law Journal
May 25, 2007