Smelly Defective Drywall? Shh!

Chinese drywall
Chinese drywall
Chinese drywall CBS

New court testimony reveals at least half a dozen industry experts knew as far back as 2006 that new U.S. homes were built with defective drywall, but kept it a secret.

"You don't want to touch that Chinese board, it's nothing but trouble," - that is what Peter Cuomo, a drywall contractor, said he was told by another industry insider when he was questioned under oath for a court deposition. Another industry expert claims "word was spreading" fast within the industry by mid-October of 2006 that some drywall was bad but no one informed customers or government regulators.

In 2009, thousands of homeowners began to complain that drywall -- mostly made in China -- was causing their homes to slowly deteriorate, making them worthless and possibly dangerous because the drywall was abnormally emitting sulfur gas. Since then, several lawsuits have been filed against manufacturers in China and the United States.

The new court documents were obtained and are reported in detail in today's Sarasota Herald Tribune and ProPublica.

CBS News reported on the issue back in November.: