MISSOULA — A federal judge postponed the sale of the Center for Asbestos Related Disease’s assets on Friday. The Libby clinic’s assets were set for auction on July 2, as part of an ongoing legal battle.
The Center for Asbestos Related Disease (CARD) Clinic offered services to the thousands exposed to toxins from mining operations near Libby, before it was shut down this May.
In 2023, the clinic was found to have misdiagnosed hundreds of patients, defrauding the U.S. government and BNSF Railway. It was ruled that the clinic owed $3.1 million to BNSF.
The clinic declared bankruptcy and its assets were seized this spring.
Lawyers for the clinic, the U.S. government and BNSF sparred in a Missoula courtroom over next steps in June.
U.S. District Court Judge Dana Christensen postponed the sale in last week's ruling until the groups complete a debtor’s exam, looking into the clinic’s assets.
The groups have until July 11 to report back to the court with plans to move forward.
