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Settlement reached in Chinese drywall case

Nov. 16, 2011


NEW ORLEANS -- A settlement has been reached between a major manufacturer of Chinese-made drywall and homebuilders who used the tainted product in about 1,500 Gulf Coast homes.

There were no objections to the settlement in court Wednesday in New Orleans.

Plaintiffs' lawyer Bruce Steckler says he expects approval by U.S. District Judge Eldon Fallon.

Steckler says the settlement between homebuilders and entities of the Knauf Group could resolve the claims, mostly in Florida, Texas, Louisiana and Mississippi. The settlement involves reimbursements to builders for homes that have been fixed or are being repaired now, and others that are in line to be remediated.

Fallon presides over other cases that include more than 10,000 claims by residents who blame damage to their homes on defective Chinese-made drywall.

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