U.S. Building Supply Firm Sues Chinese Drywall Maker

July 19, 2011

A Florida building supply company is suing a German conglomerate for $100 million over defective Chinese drywall installed in tens of thousands of homes.

Banner Supply Co. charged in the lawsuit that Knauf Gips made false claims about the quality of the drywall. The lawsuit also contends that Knauf knew the odor-emitting sulfur in the drywall would damage other housing materials, such as wiring and metals.

Banner said it has been forced to pay nearly $55 million to homeowners in a settlement over the drywall. Banner attorneys say Knauf has contended it isn’t subject to U.S. laws because the drywall was made in China.

The lawsuit was filed in federal court in New Orleans. A Knauf spokeswoman in the U.S. didn’t immediately respond to an email seeking comment.

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