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 ()
Sponsored
Renewable Energy
Storage solutions, such as Tesla's Powerwall domestic battery, are "moving from the grid to the garage to the landing at home." Tesla Motors

Battery Storage Revolution Could 'Sound the Death Knell for Fossil Fuels'

If we want to accelerate the world's renewable energy transition, we'll have to modernize the electric grid and we'll need much better batteries. Just look at Germany, which generates so much clean energy on particularly windy and sunny days that electricity prices are often negative.

Sure this is good news for a German person's wallet, but as the New York Times noted, "Germany's power grid, like most others around the world, has not yet adapted to the increasing amounts of renewable energy being produced."

Keep reading... Show less

The Future of Food: 8 Business Leaders Investing to End Slaughterhouses

From Silicon Valley tech moguls to business executives and entrepreneurs, these people know that the future of food means not slaughtering animals.

Keep reading... Show less

Oil Spill Spreading in East China Sea 'Now the Size of Paris'

By Andy Rowell

There are increasing environmental and health concerns surrounding the oil spill in the East China Sea from the Iranian registered tanker, the Sanchi, which sank on Monday carrying 136,000 tons, or one million barrels, of a highly flammable oil mix called condensate.

The tanker had burned for a week before exploding after colliding with another ship on Jan. 6, with all 32 crew now presumed dead or missing.

Keep reading... Show less

‘Tide Pod Challenge’ Highlights Danger of Colorful Laundry Packets

By Samara Geller

An unbelievably dumb and extremely dangerous dare has gone viral on social media. It's the "Tide Pod Challenge": biting down on the small, colorful—and potentially poisonous—packets of liquid laundry detergent until they burst in your mouth. Children, teens and young adults are posting videos of themselves taking the challenge—with the gagging, spitting and coughing that follows.

Keep reading... Show less
Sponsored
Popular
Arizona lost out on $27 million of revenue during the 2013 government shutdown, with the Grand Canyon alone amounting for $17 million of it. Anna Irene / Flickr

National Parks, Monuments May Remain Open But Unstaffed if Government Shuts Down

You might want to reconsider your plans if you intend to visit a national park this weekend. While the park might be open, there probably won't be any rangers on site, which could pose a serious risk to safety.

The Trump administration is reportedly planning to keep many national parks and monuments open if the government shuts down on Friday, the Washington Post reported. The move is meant to avoid the public outrage sparked by the closure of parks and memorials during the 2013 shutdown.

Keep reading... Show less
Adventure

Divers Discover World’s Largest Flooded Cave

Diving enthusiasts, could this be your next great adventure?

Archaeologists and divers with Gran Acuífero Maya (GAM)—a project dedicated to the study and preservation of the Yucatan peninsula—claim to have discovered the world's longest underwater cave just outside of Tulum, Mexico.

Keep reading... Show less
Sponsored
Pexels

3 Reasons to Be Hopeful About Our P​lanet in 2018

By Elizabeth Sturcken

Feeling down about our planet in 2018? Don't!

There are many reasons to be hopeful around environmental action in the new year—and if the following developments don't make you feel better, I've prescribed some action steps at the end that are guaranteed to set you on a healthier, happier path.

Keep reading... Show less
Sponsored

mail-copy

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