On Tuesday, January 10, 2012, Knauf Plasterboard Tianjin Company (“Knauf”) gained preliminary approval from United States District Court Judge Eldon Fallon for the creation of an uncapped repair fund to settle thousands of Chinese Drywall claims across multiple states. The order was entered as part of the consolidated Chinese Drywall cases brought in the United States District Court for the Eastern District of Louisiana, In Re: Chinese-Manufactured Drywall Products Liability Litigation, Case No. 09-md-2047.
According to the deal, Knauf will initially deposit $200 million into the proposed repair fund and replenish funds as needed. Several homebuilder companies expressed concern over the proposal, stating that the agreement contains too much uncertainty. However, none of the plaintiffs objected to the proposal, a point Judge Fallon noted in his decision. In June, the court will hold a “fairness hearing” before making a final decision on whether to approve the proposal.
