On Monday, March 28, 2016, Judge Graham Mullen of the Western District of North Carolina granted Garlock Sealing Technologies’ motion to stay the four racketeering lawsuits fired against it. Judge Mullen granted Garlock’s motion based on the parties’ “consent and for good cause shown.”
In its motion, Garlock explained that it reached an agreement on a consensual plan of reorganization with the representatives for all current and future asbestos claimants. Under the plan, Garlock and its parent, Coltec Industries Inc., and ultimate parent, EnPro Industries Inc., will fund a $480 million trust and will assume sole responsibility for paying all current and future asbestos claims. In exchange, the plan provides for injunctions prohibiting all current and future asbestos claimants pursuing claims against Garlock, Coltec, their affiliates and other protected parties.
Garlock stated that it believes confirmation of the plan is “highly likely,” receiving support from all relevant constituencies. Contingent upon the finalization of this agreement, which should occur in summer 2017, the four RICO actions will be settled and dismissed with prejudice.