Defective Chinese Drywall Lawsuits

Background information on defective Chinese drywall lawsuits, settlements and litigation updates published between 2008 to 2018.

Chinese Drywall Lawsuit Overview

The Chinese Drywall litigation arose after thousands of homeowners across the United States discovered that defective drywall imported from China was emitting sulfur gases that corroded electrical wiring, blackened metal surfaces, and caused respiratory problems.

Installed in homes during the mid-2000s construction boom, particularly in Florida, Louisiana, and other Gulf Coast states, the material became a widespread health and property hazard. Complaints quickly mounted that builders and suppliers had used contaminated drywall following post-hurricane rebuilding efforts, leading to a wave of lawsuits against manufacturers, importers, and distributors.

As evidence emerged linking the drywall to elevated sulfur content and manufacturing flaws, the federal cases were consolidated in multidistrict litigation (MDL No. 2047) in the U.S. District Court for the Eastern District of Louisiana.

Judge Eldon E. Fallon oversaw extensive discovery and coordinated bellwether trials that established the products’ corrosive and unsafe nature. The proceedings identified Chinese companies such as Knauf Plasterboard Tianjin Co. and Taishan Gypsum Co. as primary defendants, though efforts to hold them accountable were complicated by jurisdictional challenges and enforcement issues abroad.

Ultimately, a series of settlements totaling hundreds of millions of dollars were reached with Knauf and other defendants to fund home remediation programs and compensate affected homeowners. The litigation became one of the largest construction product mass torts in U.S. history, highlighting gaps in import oversight and the devastating impact of defective building materials on families and communities.

Chinese Drywall Litigation Updates

December 2, 2008: Hearing Scheduled on Consolidation of Chinese Drywall Lawsuits

The U.S. Judicial Panel on Multidistrict Litigation announced plans to hold a hearing on whether federal Chinese drywall lawsuits should be centralized. Dozens of homeowners had filed claims alleging imported drywall emitted sulfur gases that corroded metal fixtures and caused respiratory problems. The proposed consolidation aimed to streamline discovery and expert testimony on product origin and contamination.

June 16, 2009: Chinese Drywall Litigation Centralized in New Orleans Federal Court

The Judicial Panel on Multidistrict Litigation ordered all federal Chinese drywall lawsuits consolidated before Judge Eldon E. Fallon in the Eastern District of Louisiana. The MDL centralized claims involving defective drywall imported from China that allegedly caused property damage and health issues. The consolidation marked a major step in organizing what was quickly becoming one of the largest construction defect litigations in U.S. history.

August 21, 2009: Chinese Drywall Suit Scheduled for Trial

Judge Fallon scheduled the first bellwether trial for early 2010 to evaluate damages caused by defective Chinese drywall. The selected case involved a Louisiana homeowner whose property sustained extensive corrosion and foul odors. The trial was expected to set the tone for future settlements and judgments within the MDL.

November 9, 2009: Trials for Lawsuits Over Chinese Drywall to Begin in 2010

The court outlined a schedule for multiple bellwether trials to begin the following year, with cases focusing on property damage, medical symptoms, and remediation costs. Plaintiffs sought compensation from drywall manufacturers, homebuilders, and suppliers who imported the defective materials between 2004 and 2007.

December 17, 2009: Chinese Drywall Lawyers Appointed to Leadership Roles in MDL

Judge Fallon appointed a plaintiffs’ steering committee to manage pretrial coordination in the Chinese drywall MDL. The leadership team was tasked with overseeing discovery, expert development, and settlement negotiations. The appointments formalized the structure of litigation representing thousands of affected homeowners.

March 23, 2010: Chinese Drywall Litigation Moving Forward

As discovery continued, the MDL judge reported significant progress toward trial readiness. Experts identified chemical compounds in the imported drywall linked to corrosion and odor complaints. The court prepared to hear testimony from scientists, contractors, and homeowners to assess the extent of damage caused by sulfur emissions.

June 10, 2010: Deadline Set for Joining Chinese Drywall Class Action

The MDL court established a deadline for homeowners to register property claims in the Chinese drywall class action. Plaintiffs who experienced electrical corrosion, damaged HVAC systems, or health effects were urged to file before the cutoff date. The deadline was intended to finalize the scope of eligible participants before initial settlements were considered.

March 8, 2011: Chinese Drywall Company Faces Seizure by Federal Authorities

Federal regulators moved to seize assets from Taishan Gypsum and other Chinese drywall manufacturers accused of distributing defective products. The enforcement actions aimed to ensure payment of prior court judgments and secure funds for affected U.S. homeowners. The move demonstrated growing international pressure on foreign defendants.

June 10, 2011: Chinese Drywall Damages Awarded in Federal Trial

A federal judge awarded substantial damages to several Louisiana families whose homes were found uninhabitable due to Chinese drywall contamination. The decision established a compensation model for repair costs and property devaluation. The ruling marked a turning point for plaintiffs seeking recovery in the MDL.

October 4, 2011: Chinese Drywall Settlement Offers Follow Damages Awards

Following multiple verdicts in favor of homeowners, several drywall suppliers and builders extended settlement offers to resolve outstanding claims. The proposals included funding for home remediation and replacement of damaged materials. The settlements helped reduce the number of pending cases while maintaining pressure on remaining defendants.

December 13, 2011: Settlement Over Chinese Drywall Reached with Manufacturer

One of the largest Chinese drywall manufacturers agreed to a preliminary settlement resolving hundreds of claims involving sulfur-contaminated products. The deal provided funding for home repairs and reimbursement for property losses. The agreement represented one of the first major resolutions in the sprawling litigation.

February 3, 2012: Chinese Drywall Class Action Certified in Florida

A Florida court certified a statewide class action for homeowners who purchased or renovated properties containing Chinese drywall. The ruling allowed claimants to pursue damages collectively against suppliers and builders. The certification expanded the litigation beyond the MDL’s federal proceedings in Louisiana.

April 13, 2012: Jury Awards Damages in Chinese Drywall Case

A Florida jury awarded homeowners damages for property destruction caused by imported drywall, reinforcing prior court findings that the materials emitted harmful sulfur gases. The verdict further validated plaintiffs’ claims and increased momentum toward nationwide settlements.

August 30, 2012: Program Established to Settle Chinese Drywall Lawsuits

A national settlement program was introduced to streamline compensation for affected homeowners. The initiative allowed claimants to apply for standardized repair funding through court-approved administrators. The program marked a significant step in transitioning the MDL toward resolution.

October 26, 2012: Lowe’s Increases Drywall Settlement Offer

Home improvement retailer Lowe’s agreed to expand its prior settlement fund to include additional customers who purchased contaminated drywall through its stores. The revised offer provided greater reimbursement for remediation and testing costs. The move came after continuing consumer pressure and additional claims of hidden damage.

February 27, 2013: Chinese Drywall Insurance Ruling Expands Coverage for Homeowners

A Louisiana federal court ruled that insurance policies held by builders and suppliers must cover damages linked to Chinese drywall contamination. The decision opened the door for additional recovery options and accelerated settlement negotiations between insurers and plaintiffs.

March 13, 2014: Settlement Reached with Major Chinese Drywall Supplier

One of the key Chinese suppliers agreed to a multimillion-dollar settlement to compensate U.S. homeowners and builders affected by defective drywall. The agreement resolved years of cross-border legal disputes and set a precedent for holding foreign manufacturers accountable in U.S. courts.

November 5, 2015: Chinese Drywall Class Action Settlement Approved

A federal judge approved a class action settlement encompassing thousands of homeowners whose properties were damaged by sulfur-emitting drywall. The resolution provided funding for remediation, legal fees, and administrative costs. The approval signaled the near conclusion of the nationwide litigation.

May 10, 2018: Chinese Drywall Damages Raise Concerns Over Foreign Business Accountability

A legal analysis published after the settlements concluded warned that foreign manufacturers remained difficult to hold accountable for defective products sold in the U.S. The Chinese drywall litigation was cited as a key example of challenges in enforcing international judgments. The report called for stronger trade and consumer protection mechanisms to prevent similar crises.

Chinese Drywall Lawsuit Examples

January 30, 2009: Florida Drywall Lawsuit Filed Over Chinese Materials

Homeowners in Florida filed one of the first lawsuits alleging that Chinese-manufactured drywall released noxious sulfur gases that corroded wiring, tarnished fixtures, and caused respiratory irritation. The complaint named multiple builders and suppliers, claiming negligence and breach of warranty. The filing marked the beginning of widespread litigation over contaminated building materials.

March 16, 2009: Defective Drywall Class Action Lawsuits Filed Over “Rotten Egg” Smell

A series of class action lawsuits were filed nationwide after homeowners reported a strong sulfur or “rotten egg” odor emanating from imported drywall. Plaintiffs alleged the product damaged electrical systems and appliances while making homes unlivable. The lawsuits targeted both Chinese manufacturers and U.S. homebuilders who used the defective materials.

April 8, 2009: Drywall Lawsuit Filed Against Lennar Homes

Florida homeowners filed a lawsuit against Lennar Corporation, one of the nation’s largest homebuilders, alleging that the company knowingly used contaminated Chinese drywall in residential construction. The plaintiffs claimed that the drywall caused corrosion and significant property damage. The case was among the first to directly implicate a major developer in the growing scandal.

August 13, 2009: Chinese Drywall Class Action Lawsuit Filed in Nevada

A Nevada class action was filed on behalf of homeowners who discovered defective drywall imported from China in their newly built homes. The lawsuit alleged that exposure to sulfur-emitting materials caused property damage, health problems, and loss of home value. Attorneys sought nationwide certification due to the widespread distribution of the product.

January 25, 2010: Class Action Lawsuit Over Chinese Drywall Filed in Federal Court

A new class action lawsuit was filed consolidating claims from several states against Chinese manufacturers and U.S. importers of contaminated drywall. The complaint accused the companies of negligence and deceptive trade practices, alleging they failed to test or warn about the product’s hazards. The filing expanded the scope of litigation that had already reached thousands of affected homeowners.

Chinese Drywall Research and Reports

April 3, 2009: Chinese Drywall Recall Bill Introduced in Congress

Lawmakers introduced federal legislation calling for the recall and replacement of defective Chinese drywall that caused property damage and health concerns in thousands of homes. The proposed bill sought to require manufacturers and importers to fund testing, remediation, and homeowner compensation. The measure reflected mounting pressure for government intervention in the growing contamination crisis.

April 9, 2009: Florida Chinese Drywall Complaints Lead to Call for Federal Help

Following hundreds of consumer complaints in Florida, state officials urged the federal government to assist in investigating defective Chinese drywall. Homeowners reported strong sulfur odors, corrosion on copper wiring, and respiratory irritation. The requests led to broader federal involvement through the Consumer Product Safety Commission (CPSC) and Environmental Protection Agency (EPA).

April 22, 2009: Florida Drywall Testing Conducted for Health Side Effects

The Florida Department of Health began testing homes for airborne contaminants linked to imported drywall after reports of nosebleeds, coughing, and chemical odors. Early results identified elevated levels of sulfur compounds that could corrode metal and trigger respiratory problems. Officials coordinated with the EPA to expand environmental testing.

April 27, 2009: Chinese Drywall Problems Lead to Reports of Scams in Florida

As homeowners sought relief from the drywall crisis, reports emerged of unlicensed contractors and scam artists offering fraudulent remediation services. State investigators warned residents to verify credentials and avoid companies demanding upfront payments. The scams added to the frustration of families already facing costly repairs.

May 20, 2009: U.S. Senate Holds Hearings on Problems with Chinese Drywall

The U.S. Senate convened hearings to examine the nationwide impact of defective Chinese drywall. Lawmakers heard testimony from affected homeowners, scientists, and industry officials about property damage and health risks. The hearings called attention to gaps in import regulation and product safety oversight.

May 27, 2009: EPA Begins Testing of Chinese Drywall Samples

The Environmental Protection Agency initiated laboratory testing to analyze the chemical composition of imported drywall suspected of causing corrosion and health effects. The study focused on identifying sulfur-emitting compounds and their interaction with humidity. Results were expected to guide future remediation recommendations.

June 16, 2009: Chinese Drywall Tax Deductions Sought for Homeowners

Victims of Chinese drywall damage petitioned the IRS to classify property losses as deductible casualties. Homeowners argued that extensive repairs rendered many houses uninhabitable. Lawmakers supported tax relief proposals as families struggled with mounting financial burdens.

July 14, 2009: Toxic Chinese Drywall May Contain Radioactive Substance

A private laboratory reported that some imported drywall samples contained traces of phosphogypsum, a byproduct of phosphate mining that can emit low levels of radiation. The finding intensified safety fears and prompted additional testing by federal regulators. Health officials emphasized that exposure risks were still being evaluated.

July 20, 2009: Problems with Chinese Drywall Found in 21 States

Federal investigators confirmed that defective drywall linked to corrosion and health complaints had been installed in homes across 21 states. The widespread distribution underscored the national scale of the problem and accelerated efforts to trace supply chains back to Chinese manufacturers.

July 28, 2009: Lennar Identifies Drywall Problems in 400 Homes

Homebuilder Lennar Corporation announced that approximately 400 of its Florida homes were affected by defective Chinese drywall. The company began a large-scale remediation program, removing contaminated materials and assisting homeowners with relocation during repairs. The announcement highlighted how major builders had been swept into the crisis.

August 5, 2009: IRS Approves Limited Relief for Chinese Drywall Victims

The Internal Revenue Service issued guidance allowing homeowners to deduct certain losses from drywall-related damage under casualty loss provisions. The relief aimed to offset repair costs and property devaluation. Consumer advocates welcomed the decision but called for broader financial assistance.

October 29, 2009: CPSC Reports Chinese Drywall Found in 24 States

The Consumer Product Safety Commission expanded its report to confirm contaminated drywall installations in at least 24 states and the District of Columbia. The agency identified specific Chinese manufacturers responsible for the defective materials and outlined ongoing testing protocols.

November 20, 2009: Engineers Explore Solution for Chinese Drywall Problems

Environmental engineers proposed multiple remediation methods, including the complete removal of drywall and HVAC replacement to eliminate corrosion. The recommendations emphasized that partial fixes were ineffective due to lingering sulfur residue. The findings became part of standardized repair guidelines later adopted by builders.

January 5, 2010: Chinese Drywall Investigation to Continue Nationwide

The CPSC and EPA announced plans to expand investigations into the long-term effects of contaminated drywall. The agencies collected additional air quality data and studied chemical emissions under varying humidity levels. The effort was aimed at determining whether the materials posed chronic health hazards.

March 9, 2010: Contaminated Chinese Drywall Test Results Released

Federal testing confirmed that Chinese drywall emitted sulfur gases capable of corroding metals and damaging household systems. Investigators found high concentrations of hydrogen sulfide and carbon disulfide in affected homes. The results provided scientific validation for homeowners’ complaints and supported ongoing litigation.

March 12, 2010: CPSC Finds No Evidence of Serious Health Injury from Chinese Drywall

The Consumer Product Safety Commission reported that, while defective drywall caused property damage and irritation, it found no definitive link to serious long-term health injuries. The agency said most symptoms were temporary and environmental rather than toxic in nature. The announcement prompted mixed reactions from homeowners.

May 25, 2010: Chinese Drywall Corrosion Problems Confirmed in Federal Report

A federal engineering study verified that Chinese drywall caused extensive metal corrosion in homes, particularly affecting wiring, HVAC systems, and plumbing fixtures. The findings reinforced the need for complete removal as the only effective remediation method.

September 15, 2010: Drywall Identification Guidance Released by Federal Agencies

The CPSC and Department of Housing and Urban Development jointly released guidelines to help homeowners identify contaminated drywall. The document provided visual markers, labeling references, and testing methods. The guidance became a key resource for insurance claims and legal proceedings.

November 23, 2010: CPSC Releases List of Chinese Drywall Manufacturers

Federal regulators published the names of Chinese companies linked to contaminated drywall shipments. The list included Knauf, Taishan Gypsum, and other major producers. The disclosure helped attorneys trace liability and strengthened evidence in ongoing lawsuits.

June 9, 2011: Louisiana Passes Chinese Drywall Insurance Law

Louisiana enacted legislation requiring insurers to honor claims related to defective drywall damage. The law aimed to protect homeowners whose insurers had previously denied coverage. The reform was one of the first state-level policy responses to the nationwide problem.

February 28, 2012: IRS Issues Updated Chinese Drywall Tax Guidance

The Internal Revenue Service released new tax rules allowing homeowners to claim drywall-related losses without proof of total property destruction. The update simplified relief claims for affected households and reflected ongoing economic hardship from the crisis.

March 1, 2012: Army Investigates Chinese Drywall Deaths at Fort Bragg

Military officials launched an investigation after reports suggested contaminated drywall might have contributed to infant deaths at Fort Bragg housing units. The Army ordered environmental testing to assess potential toxic exposure. The incident highlighted concerns about drywall used in military housing.

June 14, 2012: Fort Bragg Investigation Clears Chinese Drywall in Infant Deaths

A military review found no evidence linking Chinese drywall to the reported infant deaths at Fort Bragg. Investigators concluded that environmental factors unrelated to drywall were responsible. The findings eased fears about contamination in government housing but reaffirmed the need for continued monitoring.

October 19, 2012: Chinese Drywall Repairs Found Effective in Federal Report

Federal agencies reported that full removal and replacement of drywall and affected systems successfully eliminated corrosion and odors. The findings confirmed that remediation guidelines were working as intended. Homeowners who followed the protocols saw no recurring damage after repairs.

March 25, 2013: CDC Finds No Link Between Chinese Drywall and Deaths

The Centers for Disease Control and Prevention released a report concluding that there was no causal link between defective drywall exposure and fatalities. The agency found no consistent pattern of toxic effects beyond short-term irritation. The results provided reassurance amid ongoing remediation efforts.

April 15, 2013: CPSC Issues Final Report on Chinese Drywall-Related Deaths

The Consumer Product Safety Commission closed its investigation into reported drywall-related fatalities, reiterating that evidence did not support a connection between exposure and serious illness or death. The agency shifted focus to long-term monitoring of repaired properties.

August 6, 2013: CPSC and HUD Declare Chinese Drywall Wiring Safe Post-Remediation

After extensive testing, federal agencies confirmed that electrical wiring left in homes after drywall removal was safe to reuse. The joint statement aimed to reduce unnecessary repair costs for homeowners completing remediation projects.

March 18, 2014: Federal Agencies Release New Chinese Drywall Remediation Guidance

The CPSC and HUD issued updated remediation guidance clarifying best practices for replacing contaminated materials and verifying air quality after repairs. The recommendations established national standards for safe reconstruction following drywall removal.

November 21, 2016: Congress Passes Ban on Future Imports of Chinese Drywall

Congress approved a bill permanently banning the importation of contaminated drywall from China after years of litigation and federal investigation. The law also required stricter quality testing for all imported building materials. The ban marked the final legislative response to the nationwide contamination crisis.

July 30, 2014: Tainted Chinese Drywall Linked to Ongoing Health Problems

New research suggested that some homeowners continued to experience respiratory irritation and headaches even after remediation. Scientists attributed lingering symptoms to residual sulfur compounds trapped in building materials. The findings emphasized the need for continued monitoring of repaired homes to ensure long-term safety.