USG Announces $4 Billion Dollar Settlement with Asbestos Claimants

USG Corp. has announced its plan to settle asbestos-related litigation at a cost of nearly $4 billion.

The wallboard manufacturer said that it will allot $900 million in cash for a trust aimed to handle current and future asbestos claims. The asbestos defendant would also pay an additional $3.05 billion to the trust through a contingent note.

The company said that payment would be moot should Congress pass The Fairness in Asbestos Injury Resolution Act (S. 852). Debate on the bill is expected to begin Feb. 6.

USG filed bankruptcy more than four years ago, and the proposed settlement is …