On September 13, 2018, the Department of Justice (DOJ) filed its first ever Statement of Interest in the bankruptcy of an asbestos company, signaling that DOJ intends to prioritize fraud and mismanagement relating to asbestos trusts. The Statement, filed in the U.S. Bankruptcy Court for the Western District of North Carolina in the Chapter 11 proceedings for Kaiser Gypsum Company, asserts that the proposed trust plans lack adequate safeguards and indicates that DOJ will object unless the final plan better ensures transparency and prevents fraud. Below are three major takeaways from DOJ’s action:

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The proverbial hacksaw inside a prisoner’s birthday cake has been supplanted by a new technological trend for bringing contraband into the jailhouse – Unmanned Aircraft Systems (“UAS”). As early as 2015, a fight broke out at the Mansfield Correctional Institution in Ohio when a drone carrying tobacco, marijuana, and heroin crashed into a yard inside the facility. That same year, a drone trafficking hacksaw blades, a cellphone, and Super Glue crashed into a maximum security prison in Oklahoma. Similar plots have been attempted in more than a dozen states nationwide, leading states like North Carolina, Tennessee, and Texas to ban drone flights over correctional facilities. Perhaps to save us from another pre-emption fight over UAS operational restrictions, the federal government is now following suit.

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