Trust plans to sue under racketeering laws

The trust alleges Hardie engaged in a pattern of fraudulent behaviour to deny compensation to future sufferers of its asbestos products. Its action follows a report that found the company knowingly under funded the trust, the Medical Research and Compensation Foundation, by up to $2bn. The foundation’s lawyer has indicated the trust will sue under the US Racketeer Influenced and Corrupt Organisation Act, which will require it to prove criminal activity. But if successful it can treble the damages awarded. The legal action also comes on the eve of delicate talks in Sydney between Hardie and unions and asbestos disease support groups over a compensation deal for future victims. The company says the trust is using the legal action to increase pressure on a company to settle. Full report in The Australian