Water Gremlin files for chapter 11 bankruptcy, looks to sell operation
WHITE BEAR TOWNSHIP, Minn. — The manufacturing plant at the center of several WCCO investigations has filed for Chapter 11 bankruptcy.
Water Gremlin is looking to sell its operation that makes battery terminals in White Bear Township.
It's facing 95 civil lawsuits from people who live or lived nearby.
They're accusing the plant of causing cancer, even death connected to excessive emissions of a toxic chemical called TCE.
Water Gremlin told WCCO: "We have chosen this path to help position Water Gremlin for future success and provide an appropriate forum for definitively resolving pending litigation regarding the past use of TCE. During this process, we remain focused on serving our customers with the same level of excellence they have come to expect, and we are as committed as ever to our talented workforce and the broader White Bear Township community. We will continue to meet current regulatory standards."
Dean Salita, attorney representing those suing, shared this statement:
"On Friday, October 27th, 2023, we learned Water Gremlin filed voluntary Chapter 11 bankruptcy proceedings in the District Court of Delaware. Water Gremlin lists as creditors to the bankruptcy our clients who have each individually filed personal injury and wrongful death lawsuits against Okabe Co., Ltd., Water Gremlin Co. and Okabe Holdings, USA, Inc. resulting from their exposure to Water Gremlin's use and emissions of trichloroethylene (TCE), a known carcinogen. Our clients, who are profoundly affected by their exposure to TCE in White Bear Lake Township and surrounding area, call upon Okabe Co., Ltd., Water Gremlin Co. and Okabe Holdings, USA, Inc. to treat them fairly and to ensure that they are justly compensated for their cancers, illnesses and resulting medical expense and the destruction and devastation Water Gremlin's conduct has caused them and their families. The victims also implore the bankruptcy court to hold these companies accountable and ensure the companies' assets are fairly allocated to compensate our clients, the cancer survivors and victims. Schmidt & Salita Law Team will continue to fight for the rights and justice of their clients."
The Environmental Protection Agency is currently proposing a ban on TCE. It follows Minnesota, the first state in the nation to ban the cancer-causing chemical.
Here's more on what Water Gremlin announced regarding the filing.