Thompsons Solicitors has raised concerns over a £70m bill being paid to the administrators and their lawyers in connection with a compensation deal for asbestos victims across Great Britain.
The bill has been put in by administrators and lawyers acting on behalf of Federal Mogul.
Administrators, Kroll, were put in charge of negotiating a compensation scheme for employees who had been exposed to asbestos while working at plants and factories across the country.
Many workers went on to develop diseases like mesothelioma and many have died while waiting for their compensation.
After five years of negotiations a compensation deal was agreed earlier this month and claimants accepted an offer of 20p in the £1. It means victims will share a £69m fund. Some mesothelioma victims with claims worth £100,000 would only receive £20,000.
But it has been revealed that Kroll has charged around £40m for their fees and their legal and professional advisors are set to receive a further £30m.
It is understood the bill will be paid in full.
Federal Mogul went into administration in 2001, freezing all compensation payments. At the time Federal Mogul faced claims in Britain estimated at up to £340m.
Ian McFall of Thompsons Solicitors said: “I gave my time as an unpaid volunteer on the creditors committee to argue that victims should receive the best possible compensation deal from the administration of Federal Mogul.
“Originally asbestos claimants were offered just 7% of what their claim was worth, but through negotiations most people will be likely to receive payments of around 20%. For those families who have suffered, it will be hard to accept that they get only 20% while the administrators and their lawyers will be paid their bill of £70m in full.”
This press release was distributed by ResponseSource Press Release Wire on behalf of 2thefore in the following categories: Men's Interest, Health, Women's Interest & Beauty, Education & Human Resources, Medical & Pharmaceutical, Public Sector, Third Sector & Legal, Manufacturing, Engineering & Energy, Construction & Property, for more information visit https://pressreleasewire.responsesource.com/about.