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CSX Concludes Racketeering and Fraud Litigation Against Asbestos Lawyers

11/6/2014 12:44:36 PM
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Jury's RICO and Fraud Verdict Stands
$7.3 million to be Paid by Defendants and Donated to CSX Foundation

JACKSONVILLE, Fla., Nov. 6, 2014 /PRNewswire/ -- CSX Transportation today announced that it has resolved the final stages of its racketeering and fraud lawsuit against asbestos attorneys Robert N. Peirce Jr. and Louis A. Raimond, and radiologist Dr. Ray Harron. As part of the settlement, the West Virginia jury's verdict stands and CSX will be paid $7.3 million to satisfy the trial court judgment entered against the lawyers and doctor on September 25, 2013, and in resolution of disputed motions for attorney fees and costs.

CSX brought civil RICO and fraud claims against the defendants on July 5, 2007, alleging that they conspired to manufacture and litigate fraudulent asbestos claims against the company. In December 2012, a jury agreed and awarded CSX approximately $429,000 in damages – an amount later tripled to $1.3 million by the trial court judge as required by the federal racketeering statute. Those damages and legal fees totaled $7.3 million.

Prior to this settlement, the judgment had been on appeal to the United States Court of Appeals for the Fourth Circuit in Richmond, Va. That appeal is to be dismissed, leaving the jury's findings and resulting judgment undisturbed.

"We sincerely thank the jury and the judges. They acknowledged that fraud in injury claims degrades the U.S. system and makes it harder for truly injured persons to be treated fairly," said Ellen M. Fitzsimmons, executive vice president, law and public affairs, CSX. "These funds will be donated to the CSX Foundation, where they will be dedicated to philanthropic efforts serving CSX's communities."

The CSX Foundation supports Beyond our Rails (beyondourrails.org), a shared effort between CSX and its employees to advance safety, wellness, environmental and community-based initiatives that seek to improve the well-being of the people and places CSX serves.

About CSX
CSX (NYSE: CSX), based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For more than 185 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and small farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. Like us on Facebook (http://www.facebook.com/OfficialCSX) and follow us on Twitter (http://twitter.com/CSX).

SOURCE CSX

Melanie Cost, 904-359-1702