CONYERS, Ga. — BioLab is facing another lawsuit over the chemical fire at its Conyers facility in September 2024.
Several groups of residents had already filed lawsuits against BioLab owner KIK International, but KIK is now being sued by an insurance company for businesses near the plant.
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Verlan Fire insurance Company is suing BioLab and its owners for the more than $20 million it paid to client Diversitech Holdings due to the fire.
The insurer claims in their federal lawsuit that BioLab’s negligence, carelessness and recklessness were responsible for the fire at the chemical plant and the release of toxic and hazardous materials.
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Verlan said in its court filing that it had paid out the damages and losses for claims by their clients in the wake of the toxic chemical fire at BioLab, making them subrogated, or able to legally take the place of, those clients for damage recovery purposes.
“The Defendants’ negligence, recklessness, blatant disregard for safety protocols and failure to prevent and/or contain the chemical fire caused the damages alleged herein,” the lawsuit says.
Verlan’s lawsuit claims that about 2.9 million pounds of dangerous and reactive chemicals were stored outside of what they refer to as a bunker for those chemicals.
The lawsuit says these dangerous chemicals being stored outside led to their reaction with water, causing the chemical reaction and eventual fire that led to evacuations and shelter orders across the Rockdale County and portions of the larger metro Atlanta area.
The insurance company said BioLab failed to have the necessary safety systems in place and did not have an appropriate emergency response plan, leading to the harms to Verlan and its clients.
Verlan said it made payments to its clients in excess of $20.3 million and may have to issue additional payments in the future.
As a result, Verlan is seeking recovery of its client’s $100,000 deductible and the $20.3 million paid, as well as interest, costs and attorneys fees.
Channel 2 Action News reached out to attorneys for BioLab and KIK and is waiting for a response.
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