NORFOLK, Va. (WAVY) — A settlement has been proposed in a case of defective Chinese drywall that impacted numerous local families as well as many others across the country.
Lawyers for thousands of property owners issued a news release Tuesday that said they filed a motion in a Louisiana federal court, asking a judge to approve a $248 million settlement to be funded by Taishan Gypsum, Co., a Chinese manufacturer of construction products.
The motion is seeking preliminary approval of the settlement before the deal is reviewed again for final approval. A judge is scheduled to rule on the motion Aug. 29.
Lawyers for the property owners estimate thousands of homes were built mainly in Florida, Louisiana, Alabama, Mississippi, and Virginia using the defective drywall between 2005 and 2008. The drywall was associated with unpleasant odors and fumes that corroded metals.
The news release said multiple lawsuits were filed beginning in 2009 against manufacturers, suppliers, builders and installers who had a role in making or supplying the drywall.
These cases were eventually consolidated into a multidistrict litigation case in the U.S. District Court for the Eastern District of Louisiana.
Attorney Jeffery Breit, who represented 180 families in Hampton Roads, said, “This is a historic settlement for Chinese-based company to take care of impacted families. This has been 11 years in making. I’m pleased with this proposal.”
If the settlement is finalized, property owners who are a part of the federal case will be notified of payments from the settlement.
