Georgia-Pacific Avoids Paying Former Employees Compensation for Asbestos Exposure

bankruptcy papers fanned out on a tableKoch Industries-owned company, Georgia-Pacific, has avoided paying its former employees compensation.

Georgia-Pacific is currently facing over 60,000 lawsuits for asbestos exposure. They have not paid anything to former employees since 2017 by using the “Texas two-step.”

In Texas, a corporation can split into two companies. This allows them to place any lawsuits and liabilities into one company and the assets to the other. Bestwall LLC was created from Georgia-Pacific to handle their asbestos liabilities and then filed for bankruptcy in 2017.

Georgia-Pacific manufactured asbestos-containing drywall products until the 1970s exposing many employees and consumers to asbestos.

Charles Koch and his late brother David, the owners of Georgia-Pacific, funded legislative efforts that impeded asbestos victims from collecting compensation. They also lobbied against asbestos regulation.

There are ongoing efforts to overturn the bankruptcy of Bestwall.