CSX Concludes Racketeering and Fraud Litigation Against Asbestos Lawyers
Jury's RICO and Fraud Verdict Stands $7.3 million to be Paid by Defendants and Donated to CSX Foundation
JACKSONVILLE, Fla. (Nov. 6, 2014) - CSX Transportation today announced that it has resolved the final stages of its racketeering and fraud lawsuit against asbestos attorneys Robert N. Peirce Jr. and Louis A. Raimond, and radiologist Dr. Ray Harron. As part of the settlement, the
West Virginia jury's
verdict stands and CSX will be paid $7.3 million to satisfy the trial court
judgment entered against the lawyers and doctor on September 25, 2013, and in
resolution of disputed motions for attorney fees and costs.
CSX brought civil RICO and fraud claims against the defendants on July 5, 2007, alleging that they conspired to manufacture and litigate fraudulent asbestos claims against the company. In December 2012, a jury agreed and awarded CSX approximately $429,000 in damages - an amount later tripled to $1.3 million by the trial court judge as required by the federal racketeering statute. Those damages and legal fees totaled $7.3 million.
Prior to this settlement, the judgment had been on appeal to the United States Court of Appeals for the Fourth Circuit in
That appeal is to be dismissed, leaving the jury's findings and resulting
judgment undisturbed. Richmond, Va.
"We sincerely thank the jury and the judges. They acknowledged that fraud in injury claims degrades the
U.S. system and
makes it harder for truly injured persons to be treated fairly," said
Ellen M. Fitzsimmons, executive vice president, law and public affairs, CSX.
"These funds will be donated to the CSX Foundation, where they will be
dedicated to philanthropic efforts serving CSX's communities."
The CSX Foundation supports Beyond our Rails (beyondourrails.org), a shared effort between CSX and its employees to advance safety, wellness, environmental and community-based initiatives that seek to improve the well-being of the people and places CSX serves.
CSX, based in
, is a premier
transportation company. It provides rail, intermodal and rail-to-truck
transload services and solutions to customers across a broad array of markets,
including energy, industrial, construction, agricultural, and consumer
products. For more than 185 years, CSX has played a critical role in the
nation's economic expansion and industrial development. Its network connects
every major metropolitan area in the eastern Jacksonville,
Florida United States, where nearly
two-thirds of the nation's population resides. It also links more than 240
short-line railroads and more than 70 ocean, river and lake ports with major
population centers and small farming towns alike. More information about CSX
Corporation and its subsidiaries is available at ww.csx.com. Like us on
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