U.S. Gypsum Corporation (USG)
The U.S. Gypsum Corporation (USG) is a prominent American manufacturer of building materials, including products that historically contained asbestos. USG has been a central figure in asbestos-related litigation due to its extensive use of asbestos in products such as acoustical plasters, insulation, and ceiling tiles. The company’s practices, knowledge of asbestos hazards, and subsequent legal battles have made it a significant case study in corporate negligence, occupational safety, and public health.
Founded in 1901, USG became a leading manufacturer of building materials, including products that incorporated asbestos for its fireproofing and insulating properties. By the 1930s, USG was already aware of the health risks associated with asbestos exposure. Internal documents reveal that the company conducted studies in collaboration with the Saranac Laboratory, which identified asbestos-related diseases such as asbestosis among workers. For example, a 1936 dust survey at the National Asbestos Co. plant in Jersey City, NJ, highlighted hazardous exposure levels and diagnosed asbestosis in several workers.
Despite this knowledge, USG continued to manufacture asbestos-containing products for decades. Notably, the company produced "Audicote," a spray-applied acoustical plaster, and "Durabond," a joint compound, both of which contained asbestos. It was not until 1970 that USG began reformulating some products to eliminate asbestos, and even then, asbestos-containing products remained on the market until regulatory bans and public pressure forced further changes.
USG’s involvement in asbestos litigation has been extensive, with lawsuits alleging negligence, failure to warn, and concealment of asbestos hazards. A pivotal moment came in 1984 during the Lexington County, South Carolina School District v. U.S. Gypsum case, where USG claimed under oath that it first became aware of the link between asbestos and asbestosis in 1975. This statement was contradicted by decades of internal documents showing earlier awareness.
Scientific studies and regulatory actions further implicated USG. For instance, the company was a member of the Gypsum Association, which discussed asbestos-related lung cancer cases and exposure risks as early as the 1960s. By 1973, USG began placing warning labels on some products, but this was seen as a delayed and insufficient response to mounting evidence of asbestos dangers.
USG’s practices have also been scrutinized for their role in environmental asbestos exposure. For example, the company was aware of neighborhood exposure risks from asbestos plants but failed to take adequate measures to mitigate these hazards.
USG’s legacy in asbestos litigation continues to shape the legal and regulatory landscape. The company filed for Chapter 11 bankruptcy in 2001 to manage the overwhelming number of asbestos-related claims. This led to the establishment of an asbestos trust to compensate victims, a common practice among companies facing similar liabilities.
Today, USG no longer manufactures asbestos-containing products, but its history serves as a cautionary tale of corporate negligence and the long-term consequences of prioritizing profits over safety. The company’s role in asbestos litigation has contributed to stricter regulations, increased public awareness, and ongoing research into asbestos-related diseases such as mesothelioma.
One notable case is the 1984 Lexington County, South Carolina School District v. U.S. Gypsum, where USG’s claim of ignorance regarding asbestos hazards was directly challenged by internal documents. This case exemplifies how corporate records can serve as critical evidence in proving negligence and liability in asbestos lawsuits.
This entry highlights the historical, legal, and scientific significance of U.S. Gypsum Corporation in the context of asbestos exposure and litigation. It underscores the importance of corporate accountability and the enduring impact of asbestos-related health risks.
