A proposed class-action settlement reached in a Louisiana court could compensate thousands whose homes were allegedly ruined by contaminated drywall imported from China, the New York Times reports.
Knauf Plasterboard Tianjin, a Chinese affiliate of Germany's Knauf Gips KG, would give cash settlements or pay to replace the drywall in affected homes. Some plaintiffs lawyers said the settlement cost could reach $1 billion.
Thousands of lawsuits were filed against KPT and other Chinese makers of drywall installed during the mid-2000 building boom when domestic drywall supply ran short.
Homeowners, many in Southern states, complained of rotten-egg odors and sulfuric acid that corroded pipes and electrical wiring. Some 5,200 plaintiffs alleged their homes contained the affected drywall, and about half provided evidence.
The settlement does not cover homebuilders, insurance firms, and suppliers that used KPT drywall and spent money to provide remedies on their own. KPT has reached reimbursement agreements with top homebuilders and is still negotiating with other parties.
