Dow Corning Settlement Approved

By John Schwartz

Washington Post Staff Writer

Tuesday , November 30, 1999

A federal bankruptcy judge has approved Dow Corning Corp.'s $4.5 billion plan to emerge from the bankruptcy protection the company entered against a mountain of silicone breast implant lawsuits.

"We've got a great step forward in both concluding the Dow Corning bankruptcy case and concluding the breast implant controversy for Dow Corning," said Barbara Houser, the lead bankruptcy lawyer for Dow Corning.

Judge Arthur Spector merely announced the ruling today, and will give full details in an opinion to be handed down next week.

But Houser said that the judge essentially approved a plan for emerging from bankruptcy that had been submitted jointly by Dow Corning and by the company's creditors, including women with implants who have sued the company over injuries that they believe were caused by the devices.

That plan sets aside $3.2 billion specifically for some 170,000 breast implant cases. For those who choose to accept a settlement, the plan offers specific levels damages for the various problems linked to the devices. Women whose implants ruptured or leaked can get up to $25,000, and women who want to remove their implants can get $5,000 for the procedure.

Those claiming that the devices caused systemic illness such as ailments of the immune system will be able to get as much as $300,000. The company says that 94 percent of women with claims against the company have said they will settle.

Of the $3.2 billion, $400 million can be used to litigate the lawsuits pursued by those women who decide not to accept the settlement. Those opting to litigate will not be allowed to sue Dow Corning's corporate parents,

Dow Chemical Corp. Or Corning, nor will they be able to receive punitive damages if they win their cases. "In general, I support the plan," said Steven Sheller, an attorney for implant recipients.