Louisiana Attorney General Buddy Caldwell filed suit today in Orleans Parish against multiple Knauf entities, other international and domestic manufacturers, distributors, importers of toxic Chinese drywall as well as several builders alleging the State of Louisiana has and will continue to suffer economic loss because of the defendants’ manufacture, distribution, sale and/or installation of defective and toxic Chinese drywall.

Over 1.1 million sheets of Defendants’ drywall imported through the Port of New Orleans was used in the construction, repair, or rebuilding of Louisiana homes and buildings after Hurricanes Katrina and Rita since 2005 as well as in new construction during this time period.

Today’s suit was filed on behalf of the State and its political subdivisions to recover damages they have suffered and will continue to suffer as a result of the toxic Chinese drywall that flooded the Louisiana market. The suit alleges the State of Louisiana has suffered the loss of expected state income tax, sales tax, property tax and other revenues caused by the negative impact of Chinese drywall; cost related to remediation and disposal of contaminated drywall and by-products; and other damages directly related to the State of Louisiana.

It is believed the off-gassing by Defendants’ drywall of various harmful chemicals is causing various health problems. The most frequent health complaints resulting from Defendants’ drywall are difficulty breathing, asthma attacks, respiratory problems, coughing, recurring headaches, heart disease, neuron-behavioral problems, sore throats, throat infection, eye irritation, irritated and itchy skin, bloody noses, runny noses, allergic reactions, and sinus infections.

Additionally, the corrosive effects of Defendants’ drywall on wiring and household appliances, is creating potential fire hazards. Defendants’ drywall creates fire hazards in two different ways. First, the corrosion of electrical wiring, in electrical equipment and gas lines can result in electrical or gas fires. Second, the corrosive effects of defendants’ drywall is damaging the wiring in smoke detectors, fire alarms, and sprinkler systems causing them to malfunction, preventing the ability of life-saving devices to properly function in cases of fire.

Today’s suit was not filed to pursue private claims of homeowners who renovated after Katrina with Chinese drywall. Individual homeowners are still encouraged to contact a private attorney of their choice should they believe they have Chinese drywall in their home. Consumers are also encouraged to file complaints with the Louisiana Attorney General’s Office at 800-351-4889 or www.agbuddycaldwell.com and the Consumer Product Safety Commission at 1-800-638-2772 or www.cpsc.gov/info/drywall/index.html.

The Louisiana Attorney General’s Office has issued three Cease and Desist Orders to three out-of-state credit repair companies. The Attorney General’s Office alleges that Caravan Credit Repair Services in Houston, Texas and Clean Credit and Kleen Credit in Tulsa, Oklahoma failed to properly register with the Louisiana Attorney General’s Office as a credit repair business, although they were allegedly advertising their services in the Baton Rouge and Lafayette area.  Louisiana law requires all credit repair businesses operating and/or advertising in Louisiana to post a $100,000 surety bond with the Attorney General’s Office.