Owens Corning to Settle Asbestos Suits

Owens Corning, maker of insulation and other building materials, said it will pay $1.2 billion to settle asbestos-related lawsuits in a bid to end one of the biggest product liability cases in U.S. history. The company, which stopped selling asbestos products in 1972, said it expects to make most of the payments during the next two years to resolve about 90% of 176,000 cases pending against it. The plan will also help resolve new claims without litigation, it said. The plan will reduce the risk of excessive verdicts against the company and make the cost of asbestos liability more predictable, Owens Corning said. To cover its obligations, Owens Corning will add $1.4 billion to reserves for asbestos claims and take a charge of $900 million in the fourth quarter. Shares of Toledo, Ohio-based Owens Corning closed unchanged at $37.06 in trading on the NYSE.