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Cosmed Says Cancer Suits Defense Costs Fueled Bankruptcy Filing

By Jonathan Randles

Cosmed Says Cancer Suits Defense Costs Fueled Bankruptcy Filing

Cosmed Group Inc., which provides pasteurization and sterilization services for agriculture and medical-device firms, said it filed bankruptcy to withstand hundreds of personal-injury lawsuits alleging gas emissions at its facilities caused cancer.

Company lawyer David Eastlake said during a Friday bankruptcy hearing in Texas that the costs of defending against a growing number of cases has become unsustainable. The company and a subsidiary sought court protection late Thursday, listing assets of at least $10 million and liabilities of between $100 million and $500 million on its Chapter 11 petition.

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