Pneumo Abex Asbestos Claims Settlement Trust

The History

Abex Corporation, a friction products manufacturer, used asbestos in its brake shoes, pads, and linings from 1926 to 1987 due to its heat-resistant properties. Some reports suggest the company also used asbestos in hydraulic systems, fluid power components, aircraft control systems, and railroad car parts.

In 2001, facing mounting asbestos lawsuits, Pneumo Abex filed for bankruptcy. As part of its reorganization, the company established an asbestos trust fund to handle existing and future claims.

In 2018, the trust became the center of a legal dispute involving PepsiCo Inc. and Eaton Corp., which inherited Abex's liabilities after acquiring Cooper Industries in 2012. Cooper had previously purchased Abex Friction Products in 1994. Pepsi sued, arguing the trust lacked sufficient funds to cover future claims, which could expose Pepsi to lawsuits due to a prior indemnity agreement with Pneumo Abex. Eaton was ordered to pay $293 million into the trust.