About a month after agreeing to a $55 million preliminary settlement with homeowners affected by Chinese Drywall, Miami-based distributor, Banner Supply Co., filed a cross-complaint against German manufacturer, Knauf Gips A.G. and its related entities, seeking over $100 million in damages. The suit was filed as part of the multi-district litigation pending 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 Banner, Knauf falsely represented the "fitness and safety" of the defective drywall manufactured by Knauf's wholly-owned China-based subsidiary, Knauf Plasterboard Tianjin Co. Ltd. The suit further alleges that "Knauf then compounded its fraud by trying to evade responsibility, shifting blame entirely to small Florida businesses, such as Banner, that relied on Knauf to tell the truth." In spite of the recent settlement, a Miami jury found Banner liable for $2.4 million for damages to a couple's home in June 2010 through a separate lawsuit. Banner is now seeking to recoup losses caused by the problem drywall by pursuing Knauf. For more information about the status of the multi-district litigation, click here.