Quantcast
Popular

$90 Billion Whistleblower Suit Filed Against Four of the Nation's Largest Chemical Companies

Four of the country's largest chemical companies have been accused of selling billions of dollars worth of harmful isocyanate chemicals but intentionally concealing their dangers to consumers and the U.S. Environmental Protection Agency (EPA) over the past several decades.

BASF Corporation, Bayer Material Science LLC, Dow Chemical Company and Huntsman International LLC have been named in a False Claims Act (FCA) lawsuit brought by New York law firm Kasowitz, Benson, Torres & Friedman LLP on behalf of the U.S. government.


EcoWatch learned that the recently unsealed whistleblower lawsuit was served on the chemical companies on Wednesday. The lawsuit was originally filed under seal in federal court in Northern California.

Kasowitz brought this action on behalf of itself and the federal government to recover more than $90 billion in damages and penalties under the FCA, which imposes penalties for concealing obligations to the government.

According to a copy of the lawsuit seen by EcoWatch, "Each of these companies is separately liable to the United States Government for billions of dollars in civil reporting penalties, which continue to accumulate by tens of thousands of dollars daily, and for billions of dollars in similarly increasing breach of contract damages."

In the suit, the law firm said that the defendants manufacture and sell isocyanate chemicals such as methylene diphenyl diisocyanate (MDI), polymeric MDI (PMDI) and toluene diisocyanate (TDI). These raw materials make up polyurethane products such as liquid coatings, paints and adhesives; flexible foam used in mattresses and cushions; rigid foam used as insulation; and elastomers used to make automotive interiors.

Occupational Safety and Health Administration (OSHA) states that exposure to isocyanate can irritate the skin and mucous membranes, cause chest tightness and difficult breathing. Isocyanates also include compounds classified as potential human carcinogens and is known to cause cancer in animals.

As alleged in the complaint, the defendants, the isocyanate industry and the EPA have long known that inhalation of isocyanates, including MDI, PMDI and TDI, can cause harm to human health.

Kasowitz believes that the chemical giants obtained scientific evidence that their widely used isocyanate chemicals can cause serious health injuries in ways not known to the EPA or the public, but failed to disclose this information to the EPA, thereby breaching their obligations under the Toxic Substances Control Act.

"Between at least 1979 and 2003, each defendant obtained and developed discrete and separate items of scientific and medical information that TDI, MDI and PMDI can cause and had caused permanent respiratory injury in humans when inhaled at levels below applicable inhalation exposure limits (low-level inhalation)," the lawsuit states.

The lawsuit further states that "Each defendant also knew during this time period that a very small quantity of TDI, MDI or PMDI on the skin—as little as one drop or 50 microliters—could cause respiratory injury in humans.

"Defendants knew that this information reasonably supported the conclusion that TDI, MDI and PMDI presented a substantial risk of injury to health, that the EPA was not adequately informed of that information, and that TSCA therefore required that they (each defendant) immediately report the substantial risk information to the EPA."

According to Andy Davenport of Kasowitz, "The defendants' cover-up implicates major human health concerns. Thankfully, the whistleblower law allows us to assist the federal government in holding these companies responsible for their actions while we alert regulators and the public to the serious undisclosed hazards of these chemicals."

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Climate
In 2018, the Arctic region had the second-lowest overall sea-ice coverage on record. NOAAPMEL / YouTube

The Past 5 Years Were the Arctic's Warmest on Record

The Arctic is still warming at twice the rate of anywhere else on Earth, and the region's air temperatures in the past five years between 2014-2018 have exceeded all previous records since 1900, according to a peer-reviewed report released by the U.S. National Oceanographic and Atmospheric Administration (NOAA) on Tuesday.

The agency's 13th annual Arctic Report Card also concluded that 2018 was second only to 2016 in terms of the region's overall warmth.

Keep reading... Show less
Science
Partial solar eclipse. ndersbknudsen, CC BY 2.0

3 Key Dangers of Solar Geoengineering and Why Some Critics Urge a Global Ban

By Justin Mikulka

A Harvard research team recently announced plans to perform early tests to shoot sunlight-reflecting particles into the high atmosphere to slow or reverse global warming.

These research efforts, which could take shape as soon as the first half of 2019, fall under the banner of a geoengineering technology known as solar radiation management, which is sometimes called "sun dimming."

Keep reading... Show less
Climate
Even an increase of 2°C would cause significant sea level rise. pxhere

Report: Current Climate Policies Will Warm the World by 3.3˚C

This past October, a widely disseminated United Nations report warned that far-reaching and significant climate impacts will already occur at 1.5˚C of warming by 2100.

But in a study released Tuesday, researchers determined that the current climate polices of governments around the world will push Earth towards 3.3˚C of warming. That's more than two times the aspirational 1.5˚C target adopted by nearly 200 nations under the 2015 Paris agreement.

Keep reading... Show less
Food
garett_mosher / iStock / Getty Images

McDonald's to Reduce Antibiotics Use in Beef

In a significant win in the fight to save antibiotics, McDonald's—the largest and most iconic burger chain on the planet—announced Tuesday that it will address the use of antibiotics in its international supply chain for beef by 2021.

Keep reading... Show less
Sponsored
Insights/Opinion
Protesters clashes with riot police on Foch avenue next to the Place de l'Etoile, setting cars ablaze during a Yellow Vest protest on Dec. 1 in Paris. Etienne De Malglaive / Getty Images

The Lesson From a Burning Paris: We Can’t Tax Our Way Out of the Climate Crisis

By Wenonah Hauter

The images from the streets of Paris over the past weeks are stark and poignant: thousands of angry protesters, largely representing the struggling French working class, resorting to mass civil unrest to express fear and frustration over a proposed new gas tax. For the moment, the protests have been successful. French President Emmanuel Macron backed off the new tax proposal, at least for six months. The popular uprising won, seemingly at the expense of the global fight against climate change and the future wellbeing of our planet.

Keep reading... Show less
Popular
Rainbow Mountains in Vinicuna, Perú. Megan Lough / UI International Programs / CC BY-ND 2.0

7 Reasons Why #Mountains Matter

December 11 is International Mountain Day, an annual occasion designated by the United Nations to celebrate Earth's precious mountains.

Mountains aren't just a sight to behold—they cover 22 percent of the planet's land surface and provide habitat for plants, animals and about 1 billion human beings. The vital landforms also supply critical resources such as fresh water, food and even renewable energy.

Keep reading... Show less
Sponsored
Popular
Tetra Images / DigitalVision / Getty Images

Don’t Stress About What Kind of Christmas Tree to Buy, but Reuse Artificial Trees and Compost Natural Ones

By Bert Cregg

Environmentally conscious consumers often ask me whether a real Christmas tree or an artificial one is the more sustainable choice. As a horticulture and forestry researcher, I know this question is also a concern for the Christmas tree industry, which is wary of losing market share to artificial trees.

Keep reading... Show less
Climate
The Woolsey Fire seen from Topanga, California on Nov. 9. Peter Buschmann / Forest Service, USDA

Hotter Planet Makes Extreme Weather Deadlier, New Study Finds

By Jake Johnson

With people across the globe mobilizing, putting their bodies on the line, and getting arrested en masse as part of a broad effort to force the political establishment to immediately pursue ambitious solutions to the climate crisis, new research published on Monday provided a grim look at what the future will bring if transformative change is not achieved: colossal flooding, bigger fires, stronger hurricanes and much more.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!