Grace Reports on Adverse Ruling in Environmental Lawsuit
September 9, 2003
W.R. Grace & Co. recently announced that the U.S. District Court of Montana has ruled in favor of the United States in the government's lawsuit against Grace for recovery of cleanup costs related to previously operated vermiculite mining and processing sites near Libby, Mont. The ruling requires Grace to reimburse the government for $54.5 million of costs expended through December 2001, and for all appropriate future costs to complete the cleanup. As a result of the court's ruling, Grace expects to take a pre-tax charge of at least $50 million in the third quarter to adjust its accruals to the expected total costs. Grace's estimated liability for this matter would then approximate $110 million, the payment of which will be subject to the outcome of Grace's Chapter 11 proceedings.
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