This article explains why Biolab incidents keep happening all over the country, and how shareholders profit from them.
https://prospect.org/power/2024-10-02-conyers-biolab-explosion-private-equity/
Dividend recapitalizations allow for huge multimillion dollar payouts to shareholders while driving the companies towards bankruptcy. When bankrupted, nothing is left for victims.
“If the explosion totals BioLab’s chlorine plant and forces the company into bankruptcy, unsecured creditors will likely get nothing. That includes the company’s pension funds and any contractors, staffing agencies, or suppliers to whom BioLab owes money—as well as anyone who tries to sue BioLab for the harms, environmental or otherwise, caused by its series of toxic infernos.”
Despite the danger they pose to the public, they pay next to nothing in fines
“After the most recent BioLab fire earlier this summer in Westlake, Louisiana, the U.S. Chemical Safety Board found the company responsible for negligence and five separate safety violations that led to the fire. BioLab was fined a measly $2,500, paid to local authorities, for the disruption caused by a separate shelter-in-place.”
They then rebuilt the facility for $250 million — $70 million more than initially stated.
Here’s another incident where they were fined just $2,500.
https://www.kplctv.com/2024/09/19/biolab-must-pay-penalty-july-shelter-in-place/
In fact, local government has been paying Biolab through tax incentives.
“Despite these repeated accidents, the Rockdale County economic development authority in Conyers paid the company an undisclosed amount in tax breaks for an expansion of the BioLab site in 2019.”
This points to a pattern of willful negligence. Shareholders tank business and risk public health for payouts. Regulators lack the teeth to fine them accordingly, and local government officials may very well be incentivized to let it keep happening.
What do you guys think?
