GE to record 115 million dollar expense for asbestos claims

General Electric Co. will record a 115 million dollar after-tax expense in the first quarter after losing a decade-long battle with its insurers over payments for thousands of asbestos-related claims, The Wall Street Journal reported on Saturday.

In a decision released this week, the New York State Court of Appeals upheld lower-court rulings preventing GE from tapping secondary insurance to cover claims brought mostly by individuals exposed to asbestos-insulated turbines, said the report.

The Court of Appeals is the state's highest court.

To date, GE, based in Fairfield, Conn., has paid more than 500 million dollars to settle asbestos-related cases, according to court documents.

GE said 509,000 asbestos-related claims were filed against the company through 2006 with 40,000 pending. GE said claims settled to date have mostly been covered by both GE's primary and secondary carriers while the rest are being covered by GE. GE did not make the asbestos but used it to insulate turbines.

GE spokesman Gary Sheffer said, in a statement, GE was " disappointed in the decision, which is contrary to how the majority of courts have ruled." Sheffer said GE is reviewing its options.

Source: Xinhua