All federal litigation involving defective drywall products has been
consolidated in the multidistrict litigation, MDL 2047, pending in the United
States District Court for the Eastern District of Louisiana, before Judge
Fallon. Since its inception in June of 2009, the litigation has been
proceeding rapidly, with the first of several bellwether trials scheduled to
begin in January 2010 in New Orleans, Louisiana. A copy of the order can be
found online at: http://www.laed.uscourts.gov/Drywall/Orders/PTO17.pdf

Until today, KPT had required that service of process of any lawsuit be made
through the Hague Convention, which sets forth the method for the service of
process abroad. This waiver of service is an unprecedented occurrence, as
service of process under the Hague Convention has been an obstacle for many
litigants involved attempting to file against international companies in the
past. The Hague Convention for the Service of Process Abroad requires
claimants to pay approximately $15,000 per lawsuit, which allows for the
translation of legal documents into Chinese and to have them presented to the
appropriate authorities in the Peoples Republic of China to obtain service on
the Chinese drywall manufacturers.

“This agreement is the equivalent of an invitation to all claimants, that were
reluctant before, to get their claims on record without the hassle, delay or
expense of service through the Hague,” said Arnold Levin of Levin, Fishbein,
Sedran & Berman, Plaintiffs’ Lead Counsel for all Chinese drywall cases. “This
will streamline the legal process that claimants have to go through by
eliminating the time-consuming and costly process of serving individual
complaints,” explains Leonard Davis, partner at Herman, Herman, Katz & Cotlar,
LLP, whose firm is serving as Plaintiffs’ Liaison Counsel for all Chinese
drywall cases. It is a huge breakthrough for all Plaintiffs whose lives have
been affected by defective Chinese drywall according to Plaintiffs’ counsel.

The court order provides that KPT will accept service of process and waive its
express rights under the Hague Convention only for homeowner plaintiffs who
are named in an omnibus class action complaint to be filed by December 9, 2009
in In re Chinese Drywall Products Liability Litigation, MDL No. 2047 (E.D.
La.). All claimants who wish to be included in this omnibus class action
complaint must submit proof that their properties contain KPT manufactured
drywall to Plaintiffs’ Lead Counsel, Arnold Levin of Levin, Fishbein, Sedran &
Berman, 510 Walnut Street, Suite 500, Philadelphia, PA 19106, by December 2,
2009.

Knauf Plasterboard (Tianjin) Co., Ltd., is alleged to be a subsidiary of the
German based Knauf Gips KG and is one of several Chinese companies that has
been accused of manufacturing and importing defective drywall from China into
the U.S. It is estimated that between 60,000 – 100,000 homes have been built
in the United States using the defective drywall between 2004 and 2008.
The defective drywall has been associated with unpleasant and potentially
harmful odors and fumes that corrode metals, including air conditioning units,
fixtures and other appliances.

SOURCE Herman, Herman, Katz & Cotlar, LLP