Banner Supply Co., the Miami-based drywall distributor, has agreed to pay $53 million to settle a class-action lawsuit claiming it sold defective drywall imported from China. The settlement offer, which is still subject to court approval, will be deposited into an escrow account for plaintiffs who claim their houses need remedial work after being built with toxic drywall.
Banner and its insurers deny any wrongdoing, pointing out that the company never manufactured the drywall it sold or delivered.
The settlement was reached before in the New Orleans court of U.S. District Judge Eldon Fallon, where many of the Chinese drywall cases have been consolidated.
A final approval hearing is set for Feb. 3, 2012, in New Orleans.