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May 23, 2008

Beer companies offer to settle Station suits for $21M

Anheuser-Busch Inc. and McLaughlin & Moran Inc. have agreed “in principle” to pay a total of $21 million to settle civil suits stemming from The Station nightclub fire, which killed 100 people, according to federal court documents filed today.

Anheuser-Busch, the world’s second-largest brewer, has reached a $5 million settlement, and beer distributor McLaughlin & Moran Inc. has reached a $16 million settlement, according to notices of settlement filed in U.S. District Court in Providence.

Anheuser-Busch, based in St. Louis, issued a statement from its vice president of legal and government affairs, Gary L. Rutledge.

“Our sympathies are with those impacted by the events at The Station nightclub. Anheuser-Busch had no responsibility for this tragedy, but is sensitive to the needs of the families. As a result, we wanted to direct the resources we would have committed to defending these lawsuits to the families.”

McLaughlin & Moran, based in Cranston, issued a statement saying its insurance carriers have tentatively accepted an offer from victims’ lawyers that calls for the insurance companies to pay $16 million.

“There has been no suggestion in the case that McLaughlin & Moran caused the fire,” the statement said. “Claims have been made that the company was liable in part for ‘sponsoring’ the event. The company has vigorously defended those claims, but we are pleased that a conditional settlement has been reached, and we hope that the case can be concluded quickly so that the funds can be distributed.”

John P. Barylick, a lawyer representing many of the victims, said plaintiffs lawyers “will only comment in court and will rely on our pleadings.”

Lawyers representing plaintiffs in all pending Station fire cases have agreed to the settlements, but the settlements hinge on the approval of all plaintiffs, the approval of the court, the filing of documents that would preserve claims against other defendants, and court approval of the plan for divvying up the money, according to the notices of settlement.

The new settlement offers bring the pool of money offered to victims to nearly $122.8 million, including the $30 million that several polyurethane foam manufacturers tentatively agreed to pay earlier this month.

The fire was sparked by pyrotechnics that the manager of the Great White rock band set off at the outset of a Feb. 20, 2003, show at the West Warwick nightclub. Sparks from the fireworks ignited highly flammable foam that was used as soundproofing, and the flames spread so quickly that many patrons could not escape.

-- Journal staff writer Edward Fitzpatrick

Read the Journal's continuing coverage of the Station nightclub fire and its aftermarth.

Posted by Mike McKinney  at 1:16 PM | Permalink

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