Chinese Drywall – (2011) $800 million – $1 billion
Written by Andrew Sarski on June 8, 2012
In 2011, Knauf Plasterboard Tianjin, a major manufacturer of hazardous Chinese drywall, agreed to pay up to $1 billion to repair 4,500 homes destroyed by its product, most of which are in the Gulf area. Based on the number of homes affected, the average size and repair cost, the settlement could be worth $800 million to $1 billion. Of that total, $280 million to $350 million could go to Louisiana, which is believed to have about 35% of all the homes damaged by Knauf’s drywall. The 2011 settlement will pay the full cost of repairing the homes and will set aside money to cover other economic losses, foreclosures and short sales. Although Kauf Plasterboard is the most well-known defendant in the case, there are more than two dozen other manufacturers of hazardous Chinese drywall remaining.