A health clinic in a Montana town plagued by deadly asbestos contamination has filed for bankruptcy protection after a judge ordered it to pay the government almost $6 million in penalties and damages for submitting false asbestos claims.
A seven-person jury in June found the clinic submitted 337 false claims thatand other benefits they shouldn’t have received. The federally-funded clinic has been at the forefront of the medical response to deadly pollution from mining near Libby that left the town and the surrounding area contaminated with toxic asbestos dust.
“We filed because we want to continue to offer the same services and keep our doors open to pay our employees,” said McNew. U.S. District Judge Dana Christensen awarded BNSF 25% of the total proceeds in the false claims case, as allowed under federal law. BNSF representatives did not immediately respond to a request for comment on the clinic's bankruptcy.
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