USG has $4 billion in trust to help those with asbestos-related injuries, making it one of the largest asbestos trusts in the country. The company declared bankruptcy in 2001 after a flood of personal injury lawsuits related to asbestos claims. The trust started accepting claims in February 2007 and is designed to provide compensation for asbestos injuries related to all USG products. Anyone injured by USG products are eligible for compensation from the company’s trust fund.

USG Asbestos History

USG was formed in 1901 and merged and consolidated with some 30 companies from across the country. In the 1930s, the company expanded its product line to include insulation, ceiling panels and joint tapes. In the 1960s, it added cements and paints to its products portfolio. Asbestos was added to many of the products.

Early on, the United States Gypsum Company tested the ill effects of asbestos dust. In the early 1930s, the company employed a laboratory to study the effects of industrial dust including asbestos. Some research indicates the company knew as early as the 1940s the asbestos-cancer connection but never told its employees or consumers. Medical professionals were warning of the dangers as early as the 1920s.

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Exposure Risks

USG did not warn its employees or customers about the potential problems with asbestos. Most of the USG asbestos-containing products were used in manufacturing, construction and remodeling industries between 1920 and 1978.

The following occupations are considered high risk for USG occupational asbestos exposure:

    • Ship Maintenance/ Ship Builders – Everyone who worked on, off or near ships is in danger of asbestos exposure. USG asbestos-containing products were used in ships and shipyards, including in wall insulation and roofing products. Anyone who installed or removed these products was likely exposed.
    • Roofers – USG roofing materials, shingles and sidings were widely used across the United States because they resisted heat, fire and other dangers. Roof installers were never warned of the dangers of asbestos in USG roofing materials. Other products, including stucco finish coats, included asbestos as a main additive.
    • Construction Workers/ Contractor – In addition to siding and shingles, asbestos was also widely used in cement products, including trowel and sprayed acoustical plaster. Construction workers and contractors, including those who worked in remodeling and remediation, are at high risk for developing asbestos-related diseases from USG products.
    • Plumbers / Pipefitters –In addition to being around the use of asbestos-containing products in construction environments when these products were installed, plumbers and pipefitters working in renovation or repair environments may be at risk for exposure to existing asbestos-containing products.

How was the US Gypsum Asbestos Trust formed?

Between the early 1920s and late 1970s, many of USG’s products contained asbestos because it was an inexpensive additive that was heat, fire and chemical resistant. USG employees and others were exposed to airborne asbestos. Wide-reaching public relations campaigns were used to convince the public asbestos was safe.

In the early 1990s, more than 45,000 USG workers or family members filed asbestos-related lawsuits. In one case, the city of Baltimore sued USG and won $8.16 million in compensatory damages and $4 million in punitive damages for the cost of removing asbestos from the city’s police headquarters. USG filed for bankruptcy protection in 2001 and the reorganization was approved by 2006. From that, the asbestos trust was born. It began accepting claims in 2007.


US Gypsum Asbestos Trust distribution

USG Trust claims are paid at 28.2 percent of the requested amount for both expedited and individual claim reviews. USG also handles asbestos injury claims for A.P. Green,, a refractory products manufacturer that USG acquired in 1967. Compensation amounts are limited per person to ensure there is enough money to pay for future claims.

In an individual review, the money awarded may be adjusted based on factors that impact the severity of illness. Some examples of these factors include how much the medical claims deviate from the established medical criteria for the disease level, industry of exposure, the claimants age, disability, employment status, how the illness has disrupted their household, and other settlements and verdicts in similar claims.

USG has several disease levels with specific scheduled values for financial compensation. They are as follows:

Disease Compensation
Mesothelioma
(Level VIII)
$155,000
Lung Cancer 1
(Level VII)
$45,000
Lung Cancer 2
(Level VI)
None (All Claims of Lung Cancer II are Subject to Individual Claims Review)
Other Cancer
(Level V)
$15,000
Severe Asbestosis
(Level IV)
$30,000
Asbestosis/Pleural Disease
(Level III)
$8,300
Asbestosis/Pleural Disease
(Level II)
$2,625
Other Asbestos Disease
(Level I – Cash Discount Payment)
$400

US Gypsum Asbestos Trust Fund Claims

Making an asbestos trust fund claim requires significant documentation to prove your case. Submitting incomplete or incorrect information can cause loss of compensation, or even for your claim to be denied.

The payment percentage impacts the compensation you receive for a successful claim, and the US Gypsum Asbestos Personal Injury Trust’s initial payment percentage was initially set at 45%, and has decreased over time, most recently being updated to 19.2% in August 2019. Making a claim sooner helps you receive the maximum compensation for your injuries, and if the payment percentage ever increases you will receive additional compensation to account for that increase.

Filing a claim with a mesothelioma trust fund can be time consuming and tricky, especially proving your exposure to the level required by the trust. Consulting an experienced mesothelioma trust fund attorney who can help guide you through the process can help you receive the compensation you or your loved one deserve for your injuries.

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Reviewed by Daniel Wasserberg

Attorney and On-Site Legal Advocate

Daniel Wasserberg was a New York metropolitan area “Super Lawyer Rising Star” from 2013 to 2018 (attorneys under age 40), and a Super Lawyer in 2019. In 2017, Daniel was named a “Top 100 Civil Litigator” by the National Trial Lawyers organization. This recognition is rarely awarded to attorneys under the age of 40. Daniel is proud to call himself a Trial Lawyer, and is often asked to speak at gatherings of the nation’s leading attorneys, from both sides of the bar.

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