NEW ORLEANS (AP) - A Florida-based supplier of Chinese drywall has agreed to a $55 million settlement of claims that the corrosive product damaged homes.
The proposed settlement announced Tuesday could resolve thousands of claims - mostly by Florida homeowners - against Banner Supply Company, several related companies and its insurers.
Lawyers for the companies and homeowners are asking U.S. District Judge Eldon Fallon in New Orleans to approve the deal.
Only plaintiffs whose homes contain Chinese drywall supplied by Banner would be eligible for shares of the settlement fund.
Banner purchased roughly 1.4 million sheets of Chinese drywall but claims it didn't know of any defects.
The agreement covers just a portion of the claims by homeowners who blame drywall for a host of problems, including corrosion of electrical wiring, appliances and electronics.