Insurers representing Florida-based drywall supplier Banner Supply Co. have agreed to pay $55 million to settle some of the claims filed by homeowners whose homes were built with Chinese drywall, our partners at the Sarasota Herald-Tribune reported today.
The settlement, reached in U.S. District Court in New Orleans, involves four of Banner Supply's insurers.
Russ Herman, an attorney who represents thousands of homeowners, said in a written statement that he expects that other parties also will settle within coming weeks.
In 2010, an investigation by ProPublica and the Sarasota Herald-Tribune found that Banner Supply and many Florida builders, drywall installers, and environmental consultants knew as early as 2006 that Chinese drywall was emitting foul odors, but chose not to warn consumers or regulators.
Through a review of public records, we found that nearly 7,000 homes had been affected by the bad drywall, which can trigger respiratory problems and cause electric appliances to fail.