Printer Friendly

GEORGIA-PACIFIC TO FILE WITH SEC ON DIOXIN-RELATED LITIGATION

 GEORGIA-PACIFIC TO FILE WITH SEC ON DIOXIN-RELATED LITIGATION
 ATLANTA, Feb. 6 /PRNewswire/ -- Georgia-Pacific Corp. (NYSE: GP) announced today that it intends to file with the Securities and Exchange Commission tomorrow a Current Report on Form 8-K disclosing the following:
 Approximately 159 suits involving 8,209 plaintiffs are pending
 in state court in Mississippi against Leaf River Forest
 Products, Inc. ("LRFP") and Great Northern Nekoosa Corporation
 ("GNN"), both of which now are wholly-owned subsidiaries of
 Georgia-Pacific Corporation (the "Corporation"). Most of the
 cases filed after the Corporation acquired GNN and LRFP in
 1990 have included the Corporation as a defendant. These
 suits allege a variety of torts including nuisance, trespass
 and infliction of emotional distress, in each case caused by
 the discharge of dioxin into the Leaf River from LRFP's pulp
 mill at New Augusta, Mississippi. As a result of changes in
 the processes at the mill initiated by mill management
 beginning in 1988, dioxin has been undetectable in this mill's
 effluent for approximately the last year and a half.
 On October 30, 1990, in Simmons v. Leaf River Forest
 Products, Inc. et al., the jury reached a verdict for the
 plaintiff, an owner of land along the Leaf River, awarding
 $40,700 in compensatory damages for trespass and $1,000,000
 in punitive damages against LRFP and GNN. The defendants
 have appealed this judgment to the Mississippi Supreme
 Court. The jury rejected claims of infliction of emotional
 distress based on fear of contracting cancer from dioxin.
 On January 31, 1992, in Ferguson v. Leaf River Forest
 Products, Inc. et al., the jury awarded $10,000 each to Mr.
 and Mrs. Ferguson, who own land along the Pascagoula River,
 on the nuisance counts, and $90,000 each to Mr. and Mrs.
 Ferguson on the emotional distress count and found in the
 defendant's favor on the trespass claims. The jury also
 found for the defendants on the same nuisance, emotional
 distress and trespass claims asserted by a co-plaintiff who
 also owns land on the river. The jury awarded $3 million
 in punitive damages, for a total judgment of $3.2 million
 against the Corporation. The Corporation intends to appeal
 this judgment.
 On January 23, 1992, LRFP's primary insurance carrier took
 the position that these claims are not within its
 coverage. LRFP and GNN have filed suit against their
 insurance carriers seeking a declaratory judgment to the
 effect that such claims are within the policy provisions.
 The claims against LRFP, GNN and the Corporation do not
 assert any actual physical harm and the plaintiffs have
 declined to be tested for exposure to dioxin. Although
 there can be no assurances as to the ultimate outcome, the
 Corporation, based on opinions of counsel, believes that
 substantial grounds exist for reversal of the Simmons and
 Ferguson judgments. Although there can be no assurance as
 to the ultimate result, the Corporation believes that it
 has meritorious defenses to the remaining claims (the vast
 majority of which are principally for emotional distress as
 a result of consuming fish from the rivers).
 -0- 2/6/92
 /CONTACT: Gail Smith of Georgia-Pacific, 404-521-4738/
 (GP) CO: Georgia-Pacific Corporation; Securities and Exchange Commission ST: Georgia, Mississippi IN: PAP SU:


BN-GS -- AT018 -- 7950 02/06/92 17:30 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 6, 1992
Words:536
Previous Article:THOMAS INDUSTRIES ANNOUNCES RESULTS
Next Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Topics:


Related Articles
GEORGIA-PACIFIC SAYS CLASS ACTION SUIT WITHOUT MERIT
GEORGIA-PACIFIC 10-K REPORTS IN THAT CLASS ACTION SUIT WILL NOT HAVE MATERIAL ADVERSE EFFECT
Georgia-Pacific and Unisource Worldwide to Merge.
Georgia-Pacific Launches Exchange Offer for Shares of Fort James Corp.
Georgia-Pacific Extends Exchange Offer For Shares of Fort James Corp. Through Nov. 16, 2000.
Georgia-Pacific Extends Exchange Offer for Shares of Fort James Corp. Through Nov. 21, 2000; Announces Exchange Ratio.
Georgia-Pacific to Divest Commercial Tissue Business Under Consent Decree With U.S. Dept. of Justice.
Federal Court Clears Georgia-Pacific, Fort James Transaction; Exchange Offer Expires at 6 P.M. Today; 75 Percent of Shares Already Tendered.
Chesapeake Sells Remaining Interest In Color-Box Joint Venture to Georgia-Pacific.
Georgia-Pacific and Bain Capital Complete Unisource Transaction.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters