NEW ORLEANS, Dec. 15 (UPI) -- A Chinese drywall manufacturer and lawyers for U.S. homeowners who sued because of odor and contamination reached a settlement to replace the gypsum wallboard.
The settlement reached by Knauf Plasterboard Tianjin and a class action steering committee affects about 5,200 plaintiffs who specifically alleged their homes contain the KPT drywall, the steering committee and KPT said Thursday in a release.
The remedial work is free.
Claims were filed by homeowners in Florida, Louisiana, Alabama and Mississippi, and thousands more across the country could file claims in the future. Plaintiffs include homeowners, commercial owners and tenants; multi-unit properties; prior owners of foreclosed properties or those who have engaged in short sales because of the KPT drywall, the release said.
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"We are delighted that thousands of homeowners will have an opportunity to have these Chinese drywall complaints addressed," plaintiff lead counsel Arnold Levin said. "They will now be able to repair their property, receive compensation and move forward after suffering the effects of Chinese drywall."
Homeowners have three options: Use a certified contractor approved by the steering committee and KPT, use a qualified contractor of their choosing or receive a cash payment. All of the remediated homes will be inspected by environmental engineers, who will certify to homeowners their homes are free of problem drywall odors and contamination.
"From the outset, KPT has been committed to developing a comprehensive and efficient approach to resolve the problematic and complex issues arising from Chinese drywall. This global settlement is the culmination of those efforts," said Gregory Wallance and Steven Glickstein of Kaye Scholer LLP in New York, representing KPT.
The settlement is subject to final approval by U.S. District Judge Eldon E. Fallon in New Orleans.
