A manufacturer of Chinese drywall has agreed to pay 300 homeowners to replace tainted drywall used in the construction of their homes.
A settlement was reached in Louisiana federal court on Thursday between Knauf Plasterboard Tianjin (KPT) and owners of homes built with the company's defective drywall. Under the settlement, KPT has agreed to pay for replacement of the drywall, relocation of the families during the replacement, and attorneys' fees. The lawsuits were brought by hundreds of homeowners in Florida, Louisiana, Alabama and Mississippi.
In order for homeowners to qualify to have their homes repaired, at least 95 percent of the drywall in their homes must have been manufactured by KPT. If a home is found to contain a smaller percentage of KPT drywall, homeowners would be required to reimburse KPT for the corresponding percentage of the replacement costs.
KPT is the only Chinese drywall manufacturer to engage in settlement negotiations. Other manufacturers of defective drywall have as yet failed to respond to U.S. court proceedings.