Skip to Content

Home Siding Co. Pays $104M To Settle MDL Over Defects

Posted: October 3, 2013
By: Juan Carlos Rodriguez
Source: Law360
Outcome: Settlement
Practice Areas: Consumer Protection

A federal judge on Thursday approved a $104 million settlement between CertainTeed Corp. and a class of consumers who alleged that various home sidings made by the company were prone to premature degradation and failure.

In 2010, numerous class actions were filed across the country against CertainTeed relating to the alleged product defects, and in 2011 the U.S. Judicial Panel on Multidistrict Litigation transferred all of the actions filed in federal district court complaining about CertainTeed's siding to the Eastern District of Pennsylvania.

"The settlement creates a gross, nonreversionary settlement fund of $103.9 million for the benefit of the settlement class and establishes a six-year claims period and a claims process where owners of properties on which failed siding was installed may obtain cash payments based on the size of the affected wall and the extent of any failure," the settlement agreement said.

According to the settlement, the compensation to be provided to class members is based on criteria including the size, age and condition of the damaged siding. Class members whose repair costs are greater due to the size or complexity of the siding on their walls will receive proportionately more than those with lesser amounts of siding on their walls. Similarly situated class members will receive similar benefits under the proposed settlement.


View the full article here.