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Litigation Main Source of Relief
To Homeowners Affected by Drywall Woes

Aug. 5, 2013, 9:04 PM

A group of settlements in cases over allegedly defective Chinese-made drywall has guaranteed more than $350 million in aid to homeowners, the U.S. Government Accountability Office calculated in a July 31 report.

Insurers that issued commercial general liability policies partly funded the settlements, GAO said in the report, Information on Defective Drywall.

The report also mentioned an “uncapped” settlement with one of the “primary” manufacturers of the drywall at issue, presumably referring to a 2011 settlement involving upwards of $200 million. GAO told BNA Aug. 5 it does not know whether the manufacturer settlement was backed by insurance funds. ...