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Knauf Plasterboard agrees to $800M settlement with 4,500 homeowners for toxic Chinese drywall

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The manufacturer of toxic Chinese drywall has agreed to pay $800 million to settle thousands of claims from homeowners who say the defective building material has caused extensive property damage and health side effects.

According to a Bloomberg report, Knauf Plasterboard Tianjin Co. agreed to the terms of a settlement with approximately 4.500 homeowners who had the company’s toxic drywall installed in their home.

Chinese drywall became a popular, inexpensive alternative to domestically-produced wallboard during the housing boom earlier this decade. It was used throughout states where new homes were built in the thousands and Knauf already faces more than 12,000 damage claims from homeowners with the plaster board installed in their homes. Because the toxic drywall uses inferior products and wasn’t manufactured properly it led to myriad problems for homeowners and the contractors who built the homes. Toxic Chinese drywall is not properly dried and began crumbling and falling apart after it was installed. A sulfuric smell accompanied breathing and eye irritations for those living in buildings with toxic Chinese drywall. The defective product also caused corrosion of wires and household appliances and fixtures, costing homeowners millions of dollars in damage nationwide.

The Consumer Product Safety Commission has ruled homes must be nearly completely gutted to remedy the problems caused by toxic Chinese drywall but until manufacturers of this defective product were identified and held accountable, those costs were on the homeowners.

The $800 million settlement announced this week does not detail how much any homeowner would receive individually. A homeowner must verify they’ve had Knauf’s Chinese drywall installed at their homes to receive compensation from the settlement.


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