Halliburton Securities Fraud Case

Investors who purchased Halliburton stock between 1999 and 2001 filed a lawsuit in Federal Court seeking money damages. The complaint alleges that Halliburton’s CEO fraudulently underestimated Halliburton’s asbestos liabilities, overstated revenues and further overestimated the benefits of its1998 merger with Dresser Industries, Halliburton’s rival and a corporation with known asbestos related liabilities.

Asbestos, a naturally occurring mineral that includes chrysotile, crocidolite, tremolite, amosite, anthophyllite, and actinolite asbestos, causes serious diseases, such as mesothelioma, asbestosis, and lung cancer.  People who have experienced an asbestos related injury can file a claim or lawsuit against manufacturers and companies responsible for the exposure to asbestos and sue for recovery of damages.   The corporation that manufactured and supplied the asbestos or asbestos containing products then assumes “asbestos-related liabilities” related to such claims.  Successors who purchase these companies often assume responsibility for these liabilities.

The Plaintiffs allege that when Halliburton finally corrected its estimates of their liabilities as well as benefits, the stock price dropped and lost nearly 80% of its value. Halliburton’s split off the Dresser division in 2001 forming Dresser, Inc. Dresser, Inc. purchased its equity back from Halliburton’s management and is now a separate entity. The plaintiff shareholders sought to have the case certified as a class action in federal court. Defendant Halliburton appealed the lower court’s certification.

In a blow to plaintiffs, the Appellate Court ruled in favor of Halliburton finding that plaintiffs could only get class action certification if they first proved by a preponderance of the evidence, that the alleged misrepresentations caused the stock price to fall, resulting in investor losses.” A very high standard. The Plaintiffs petitioned the U.S. Supreme Court to review Appellate Court’s decision.

Before deciding to review the plaintiffs’ petition, the Supreme Court had asked the United State’s Solicitors’ office last October to file a brief expressing the views of the U.S. Government. The Obama Administration agreed and filed a brief urging the court to review the case. The Administration believes that Plaintiffs should have the benefit of full discovery of the facts before the court requires them to prove an important element of their case at the class certification stage of the case.

Oral arguments are expected in May 2011 and a decision on the standard for class certification is expected as early June. The case is Erica P. John Fund, Inc. v. Halliburton Co., et al., Docketed May 19, 2010, Lower Court United States Court of Appeals for the Fifth Circuit Case No. (08-11195) Current docket No. 09-1403.

This entry was posted on Sunday, January 16th, 2011 at 6:51 am and is filed under Asbestos. You can follow any responses to this entry through the RSS 2.0 feed.

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Woman faces 230 years for asbestos related fraud

The US District Attorney’s Office, Massachusetts branch, has aided in the discovery and conviction of an asbestos related criminal. Albania Deleon is now facing a potential 230 years of prison time. Deleon taught classes at Environmental Compliance Training, the largest asbestos removal training program in Massachusetts. It was found that between 2001 and 2006, the majority of Deleon’s students received less than adequate training before being placed in the work field. Worksheets and tests were provided to class participants with answers already filled in; students only needed to sign their names to be passed in the exercise.

Deleon also had a large number of illegal aliens in the program she taught, but failed to report these individuals to the proper authorities. Both illegal aliens and legal citizens who graduated from the program were paid under-the-table once they began work. Deleon used fraudulently prepared payroll documents to cover the financial illegalities.

The US requires specific training, licensing and certification for individuals and companies working with asbestos. The state-to-state requirements may vary, but all regulations are in line with the Environmental Protection Agency’s (EPA) Clean Air Act commitments to maintain and enhance the quality of air in America.

Asbestos has been used for decades in the US particularly in building and construction and some manufacturing industries. However, as associated health risks became known asbestos use has dropped and laws have been put in place to protect the public from the toxic chemical.

Asbestos causes severe respiratory conditions including lung cancer and asbestosis. Mesothelioma is a rare cancer caused almost exclusively by asbestos fibers which, if inhaled, can began a mutation process in lung lining and lining of other abdominal cavities which leads to this cancer.

Mesothelioma takes decades to develop, demonstrating symptoms like that of pneumonia twenty to fifty years after original asbestos exposure. Life expectancy following diagnosis is grim, averaging eighteen months. There are mesothelioma treatments available, but no known cure.

Deleon was found guilty in November 2008, on a collective 27counts of conspiracy to make false documents, making false documents, hiring illegal aliens, encouraging illegal aliens to live in the US, payroll tax fraud and mail fraud. She fled the state following conviction but was found almost seven months later in Santa Domingo.

In a press release Cynthia Giles, assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance, said, “Albania Deleon put communities at risk by issuing fraudulent asbestos-removal training certificates to hundreds of untrained workers.”  She continues, “This is yet another example of great teamwork and dedication of the United States Attorney’s Office for the District of Massachusetts, U.S. Marshals Service and our own special agents who protect the American people from environmental crimes.”

This entry was posted on Tuesday, January 25th, 2011 at 9:54 AM and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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DEP to improve supervision after Asbestos Inspector Fraud

New York City’s Department of Environmental Protection (DEP) has made a statement saying that it has implemented new protocols to make sure that all of their licensed asbestos inspectors are better monitored. DEP says it will now have all its filing systems computerize and will collaborate with federal, state, and city agencies. According to DEP, the new Internet based filing system will not accept asbestos reports from asbestos testing and inspection services whose license has been suspended or taken away. DEP has over 500 asbestos inspectors who will now be audited and spot-checked to ensure asbestos testing and inspection regulations are enforced.

Some mesothelioma lawyers felt that due to the cost and difficulty of safe asbestos handling may have companies trying to take shortcuts thus making it unsafe for many. This could lead to devastating effects due to the dangers of asbestos; because if asbestos is improperly handled and the dust particles are airborne and inhaled into the lungs, it could cause serious internal damages. That is why proper inspections and testing are critical.

Saverio F. Todaro ran an environmental inspection and testing business, admitted in federal court earlier this year that he had faked nearly hundreds of reports that show city buildings were asbestos free. Todaro admitted that he never actually did the recommended asbestos testing and inspections, but he had submitted documents with fake signatures claiming that the buildings were tested and free of asbestos. According to Todaro, he has been forging documents for over ten years. Over the ten year period, many of the structures that were supposedly tested and inspected for asbestos have been, remodeled, repaired or demolished. So, it is difficult to say how much harm has been caused by Todaro’s actions.

According to reports, DEP was responsible for issuing Todaro his asbestos license. However, the environmental agency suspended Todaro’s asbestos inspection license back in 2004, due to improper record handling and poor structure surveying. But due to improper monitoring of licenses, he was able to get away with providing asbestos inspections and testing for businesses and developers who were then given the green light to go ahead with renovations after obtaining permits from the city’s Building Department. Todaro was later found guilty of fraud and several environmental crimes, and was sentenced to five years in prison for his actions.

Asbestos is a building material that causes various cancers, such as asbestosis, lung cancer and mesothelioma. Mesothelioma is a deadly cancer that is always often caused by asbestos exposure. Te cancer takes over many of the body’s internal organs and usually take years to develop emerge. Once mesothelioma is detected the life expectancy is around 5 to 18 months. Currently there is no cure for mesothelioma, however new treatments and therapies are available. If mesothelioma is detected during the early stages and aggressive treatment is given, the life expectancy of mesothelioma patients can increase.

Do you know someone who may have been exposed to asbestos and has developed mesothelioma? If you or a loved one has been diagnosed with mesothelioma cancer that can be connected to asbestos exposure caused by a product or neglectful ex-employer, you may be entitled to monetary compensation for your pain and suffering. Contact an experienced asbestos lawyer to learn about your options and to see if filing a mesothelioma lawsuit will be in your best interest.

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