"Owners of thousands of U.S. homes tainted with foul-smelling Chinese drywall agreed to a legal settlement on Thursday with a German manufacturer."

"An attorney for the plaintiffs, Russ Herman, said the settlement reached with Knauf International was worth $800 million to $1 billion, but a lawyer for the company said the final amount would likely be much lower.

Knauf International's Chinese subsidiary made the tainted product, which has been blamed for producing a stench and fumes that damage air conditioning, wiring and fixtures.

Plaintiffs say the settlement, which requires court approval, could provide for repairs on as many as 4,500 properties containing drywall made by Knauf Plasterboard Tianjin, or KPT."

Tom Hals reports for Reuters December 15, 2011. [2]