$200 Million Settlement Reached in Asbestos Case

By Jessica Portner

Thousands of school districts reached a $200 million property-damage settlement last week with several major asbestos manufacturers, bringing a decade of litigation one step closer to an end.

In one of the largest class actions ever brought before a federal court, most of the school districts in the country--more than 15,000--sued 50 companies in 1983. They sought reimbursement for the millions they spent to eradicate the hazardous material--once widely used as a fire preventive and insulation--from school buildings.

Since the lawsuit was filed, several smaller companies named as defendants in Board of Education of Memphis City Schools v. U.S. Gypsum Company had reached settlements with districts. With last week's agreement involving the 10 largest manufacturers,...