Tainted Drywall Settlement Offers $50 Gift Cards to Homeowners, Millions to Attorneys

Tainted drywall settlement offers $50 gift cards to homeowners, millions to attorneys. In one of the first cases to reach a settlement, Lowe’s Companies, Inc. has agreed to offer customers who purchased defective drywall gift cards ranging from $50 to $2,500, depending upon the documentation presented.  An article in ProPublica.org describes the Georgia based case now under review.

While most of the victims will receive Lowe’s gift cards, a few may also be eligible for an additional cash settlement of up to $2,500.   However, the big winners in the case will be a group of attorneys who negotiated the settlement and who will receive more than $2 million.

The settlement offer does little to help homeowners, many of whom have had recurring problems with A/C systems, electrical problems, and who may have suffered health issues due to the high concentrations of sulfur gases emitted by the defective drywall.  Those who refuse to accept the settlement may opt out and pursue their case on an individual basis, a course that could involve significant legal expenses and the frustration of waiting years before their case is settled.

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3 comments to Tainted Drywall Settlement Offers $50 Gift Cards to Homeowners, Millions to Attorneys

  • [...] on Tainted Drywall By housingguruadmin, on October 29th, 2010 Several weeks ago I wrote a POST describing a settlement offer from Lowe’s for customers who had purchased “tainted” drywall, [...]

  • Steve – The defective drywall issue will be with us for years. Homeowners will suffer huge losses and lawyers will get rich. It’s a problem that is very difficult to solve, and with home values what they are, the cost of repairing some homes is more than they are worth.

  • Steve Clarkson

    This is excellent information. As a home inspector, in our Chapter meeting this past month, we discussed this very topic. None of the inspectors have run into Chinese drywall but we discussed the methods we use to identify it. It is good to know now what to tell our clients on repairs and funding.
    Steve Clarkson
    Complete Home Inspections