U.S. Gypsum Beats Antitrust Claims Against Drywall Affiliate

U.S. Gypsum Corp. and a subsidiary have dodged part of a sprawling antitrust lawsuit alleging a nationwide scheme to prop up drywall prices, but another USG affiliate must face those claims.

The suit by a dozen home builders, part of a larger multidistrict case, originally named seven companies as defendants. But the July 19 summary judgment decision by Judge Michael M. Baylson of the Eastern District of Pennsylvania leaves just two: drywall maker Pabco Building Products LLC and USG-owned distributor L&W Supply Corp.

The suit “made no attempt” to link its conspiracy claims to USG, Baylson found. Instead, the builders ...