Handyman Chain Lowe’s Settles Drywall Suit

The nation’s drywall drama has hit home for one of the nation’s biggest handyman chains. Lowe’s Cos. agreed to distribute $6.5 million in gift cards and pay up to $2.2 million in attorney fees to settle a class-action lawsuit regarding defective drywall.

Under the agreement, which Lowe’s said received preliminary court approval, the North Carolina-based retailer admits no wrongdoing. Plaintiffs claimed Lowe’s sold the problematic drywall, which is said to cause a rotten-egg odor and tarnish metal. The health effects remain unclear.

While much of the nation’s defective drywall was imported from China, Lowe’s settlement agreement didn’t mention where the drywall was produced. In an email, a company spokeswoman writes: “Lowe’s has been assured by vendors who provided stock drywall for sales in our stores that drywall they provided was not imported from China. But the settlement includes claims of all types of allegedly defective drywall people claim to have purchased from Lowe’s.”

Anyone who purchased allegedly defective drywall from Lowe’s before July 27 is included in the proposed settlement class. The claims process is expected to begin in about 30 days.

An attorney for plaintiffs couldn’t be immediately reached for comment.

Source: Mary Ellen Lloyd, Wall Street Journal Blogs