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Entries in Chinese Drywall (1)

Thursday
Dec152011

Chinese Drywall Manufacturer Agrees to $800 Million Settlement

iStockPhoto/Thinkstock(NEW ORLEANS) -- Knauf Plasterboard Tianjin, a major manufacturer of Chinese drywall, agreed Thursday to pay at least $800 million to settle claims with thousands of American homeowners.

The culprit was Chinese drywall that began corroding metal in homes built during the housing boom.

“Our air conditioner coils turned black,” said Boynton Beach, Fla., resident Kathy Foster. “We had them replaced, and within three months they were black again.”

Then she noticed a smell permeating her home. “There's a lot of people that say it smells like rotten eggs, but to us it's more of a gas smell to it.”

Thursday’s settlement, “will enable approximately 4,500 properties that contain tainted Chinese Drywall supplied by KPT, a Knauf subsidiary, to have relief,” according to a news release.

"Though they are not admitting fault, by being accountable, KPT has agreed to provide thousands of families and resident / owners the opportunity to recover losses caused by KPT drywall,” said Russ Herman, a New Orleans-based attorney involved in the case. “The Peoples' Republic of China, the corporate interests it controls and the mine from which the toxic gypsum came have not taken responsibility for the damage they have caused another 4,000 to 8,000 innocent American families and many in Louisiana, who have been thrice victimized -- by Katrina, toxic FEMA trailers and tainted Chinese drywall. We hope that Knauf's efforts to provide a remedy for these people will provide a platform for the Peoples' Republic of China and corporations such as Taishan and BMBN, to begin worthwhile discussions," Herman said.

Copyright 2011 ABC News Radio







ABC News Radio