ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, December 3, 1996 TAG: 9612030074
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
DATELINE: BAY CITY, MICH.
Dow Corning Corp., once the biggest maker of silicone breast implants, proposed Monday to pay implant recipients less than half the $2 billion that the company originally offered unless a court rules the implants are hazardous.
The proposal is contained in a reorganization plan aimed at getting the company out of bankruptcy court, where it sought protection in May 1995 because of the crush of lawsuits from women who said the implants made them sick.
A plaintiff lawyer immediately called the plan inadequate. The $2 billion is identical to the amount the company had pledged to settle claims two years ago, but now it says the full $2 billion would be released only if a trial determines the implants are hazardous.
The reorganization plan must be approved by Bankruptcy Court Judge Arthur J. Spector to take effect. The company said it hopes to have the plan approved in 12 to 18 months and emerge from bankruptcy.
Hundreds of thousands of women contend the implants made by Dow Corning and other companies caused a variety of health problems. Dow Corning, once the leading maker of silicone implants, stopped making them in 1992 but maintains they are safe. Other implant makers have offered a separate settlement that is now being considered by women.
``This plan is consistent with our vision of how Dow Corning will proceed after the bankruptcy,'' said Richard Hazleton, chief executive officer of the silicone manufacturer. ``It provides closure and keeps the company strong.''
Not so, said Dennis Meir, an Atlanta lawyer who represents plaintiffs.
``It sounds as though the amount for tort claims is grossly inadequate,'' he said.
Of the $2 billion breast implant fund, $600 million would be earmarked for settlements, which would allow women with breast implants to receive quick payments without a court trial.
The remaining $1.4 billion would be contingent on the outcome of a trial to resolve the central legal controversy over whether breast implants cause disease.
``We believe that a court-appointed, independent panel of doctors and scientific experts should assess all of the available studies to determine if there is legitimate and sufficient proof of a connection between silicone breast implants and disease,'' Hazleton said.
``In addition, we propose that a causation trial be held at which a jury can hear testimony from the court-appointed, independent scientific panel and then decide whether claims that breast implants cause disease should be compensated by Dow Corning,'' he said.
Dow Corning earmarked an additional $1 billion in its reorganization plan to settle claims of such creditors as suppliers, trade vendors and financial institutions.
Midland-based Dow Corning is jointly owned by Dow Chemical Co. and Corning Inc.
LENGTH: Medium: 60 linesby CNB