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Arconic paid more to shareholders than Grenfell victims in settlements

Arconic, the company behind Grenfell Tower's flammable cladding, paid more in compensation to its shareholders than to the fire's victims, with insurers covering most of the settlements.

  • Arconic's Grenfell-related settlements totalled £86m, with £1.5m paid by the company and the rest by insurers.
  • The Grenfell Tower fire in June 2017 resulted in 72 deaths, including 18 children.
  • A new report suggests 'failure to prevent' laws and 'punitive damages' for England and Wales.

Arconic, the company linked to the flammable cladding used on Grenfell Tower, paid more compensation to its shareholders than to the victims of the disaster. Of the £86m in Grenfell-related settlements, Arconic itself paid £1.5m, with the remainder covered by insurers.

An inquiry identified Arconic's product as the "primary cause" of the fire's rapid spread. The overall cost of making hundreds of buildings safe, estimated to be multibillion-pound, is largely borne by the state.

A report by Common Wealth and FIND proposes two changes for England and Wales: a "failure to prevent" law, making companies responsible for preventing foreseeable serious harm, and a "punitive damages" approach, which would determine what a company should pay for its conduct beyond victim compensation.

The Grenfell Tower fire in London in June 2017 claimed 72 lives, including 18 children. Nearly a decade later, no one has been criminally charged over the causes of the fire.

Why this matters: The current system of corporate accountability in Britain is being questioned, with calls for new laws to ensure companies pay for harm caused.

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