Keene Corporation

The Situation

In 1993, Keene Corporation filed for bankruptcy, having received more than 100,000 asbestos lawsuits. In a fraudulent conveyance action following the bankruptcy, plaintiffs alleged that starting in the early 1980s, Keene and its management, with the assistance of its lawyers and outside auditors, engaged in a series of transactions to hide Keene’s assets from future asbestos claimants.

NERA's Role

Filing an expert report and affidavit with the court, in addition to deposition testimony, NERA determined that Keene had a reasonable basis for its forecasts of its asbestos liabilities at the time of the transfers.

The Result

Finding that no reasonable jury could find that Keene and its officers, directors, lawyers and auditors engaged in any scheme to defraud, the United States District Court of the Southern District of New York granted summary judgment to defendants.