A federal grand jury in the District of Montana has indicted WR Grace and seven current and former Grace executives for knowingly endangering residents of Libby, Montana, and concealing information about the health effects of its asbestos mining operations. According to the indictment, the company and its executives, as far back as the 1970s, attempted to hide the fact that toxic asbestos was present in vermiculite products at the Libby plant. The grand jury charged the defendants with conspiring to conceal information about the hazardous nature of the company's contaminated obstructing the government's clean-up efforts, and wire fraud. Approximately 1,200 of the town's residents suffer from some kind of asbestos-related abnormality.

“This criminal indictment is intended to send a clear message: we will pursue corporations and senior managers who knowingly disregard environmental laws and jeopardize the health and welfare of the workers and the public,” said Thomas V. Skinner, acting assistant administrator for enforcement and compliance assurance for the Environmental Protection Agency.

The company could face a $280 million fine, double its after-tax profits from the mine, while the defendant executives could receive prison sentences of up to 70 years.