ARPC Created Econometric Models for Bankruptcy Trust in $24 Million Toxic Chemical Contamination Mass Tort Case

ARPC completed a major project developing sophisticated econometric models in a mass tort case involving environmental contamination by Met-Coil Systems Corp., a designer and manufacturer of sheet metal machinery and fabricating systems.

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John Brophy, ARPC Partner

"ARPC created a statistical model that has become the foundation for use in other environmental contamination cases in which the universe of future claims is uncertain but potentially substantial,” said John Brophy, Partner.

Washington, DC (PRWEB) May 07, 2013

ARPC, a business advisory consulting firm offering economic, financial, statistical, business analytics and operational expertise to clients facing critical legal and business challenges, announced that the Company completed a major project developing sophisticated econometric models in a mass tort case involving environmental contamination by Met-Coil Systems Corp., a designer and manufacturer of sheet metal machinery and fabricating systems. When toxic chemicals used in the company’s manufacturing facility were spilled onto the soil, allegedly contaminating the groundwater supply in surrounding residential neighborhoods, Met-Coil filed for bankruptcy reorganization and established a trust fund to compensate people that suffered injuries as a result of the chemical exposure.

ARPC was hired by the bankruptcy court-appointed Future Claimants Representative (FCR) to develop econometric formulas to estimate the size of two potentially large groups: one, the number of people that already were – or would be -- potentially exposed to the hazardous chemical; and, two, the projected number of occurrences of chemical-related diseases that might emerge from within those two universes. These numbers were crucial to ensuring that a large enough financial reserve was set aside in the trust fund to cover potential personal injury claims against Met-Coil through 2048.

ARPC experts worked with scientists to understand the geographic scope of the contamination and where it could potentially spread in the future, consequently affecting even more people over time. ARPC economists and statisticians then developed a database of the households and their inhabitants that had lived in both current and projected contaminated areas during the multi-year period of chemical exposure. ARPC worked with the doctors and medical experts who were brought in to assess how various chemical exposure levels would affect incidences of cancer or non-cancer diseases. The results of the ARPC analyses led to the creation of a $24.5 million dollar trust that was deemed sufficient by the court to handle all the current as well as forthcoming claims. The Company was appointed executive director of that fund.

“ARPC is skilled at applying analytical rigor, deep theoretical knowledge and a sound mathematical foundation to the task of understanding large data sets and analyzing them to forecast potential future outcomes,” John Brophy, ARPC Partner. “In this Met-Coil Systems case, we created a statistical model that has become the foundation for use in other environmental contamination cases in which the universe of future claims is uncertain but potentially substantial,” he continued.

ARPC has published a case study detailing the Company’s role and analytical approach used in this toxic chemical contamination mass tort case. The case number is 03-12676MFW. The Company continues to oversee the trust.

About ARPC
ARPC is an economic and management consulting firm that provides statistical, econometric and financial analysis to clients facing complex legal and business challenges. For over 40 years, ARPC’s consultants have assisted law firms, corporations, governments and non-profit organizations in addressing their most serious economic and financial concerns in the courtroom, board room and marketplace. ARPC provides expert services in a wide variety of cases involving mass torts and product liability, antitrust, intellectual property, securities litigation, bankruptcy, and settlement administration. Our consulting depth includes a staff of highly skilled specialists with strong credentials in economics, finance, statistics, engineering, and epidemiological modeling. The Company headquarters are located in Washington, D.C. For more information, visit http://www.arpc.com

Media Contact: Ran Farmer, ARPC. (w) 202 797 1111 R.Farmer(at)arpc(dot)com
Liz Sara, Best Marketing, LLC. (m) 202 255 0134 Lsara(at)BestMarketing(dot)net


Contact

  • Ran Farmer
    ARPC
    202-481-1340
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