Alabama
6:04 pm
Wed May 30, 2012

Expanded Deal Over FEMA Trailer Fumes Worth $37.5M

New Orleans, LA – An expanded class-action settlement agreement calls for around two dozen companies that manufactured trailers distributed by the government after hurricanes Katrina and Rita to pay a total of $37.5 million to resolve claims that Gulf Coast residents were exposed to dangerous fumes while living in them.

The amount is disclosed in a federal court filing Wednesday. About $22.7 million of the total would be paid by four manufacturers that agreed Monday to participate in the expanded settlement proposal.

Last month, a larger group of manufacturers agreed to pay about $14.8 million to resolve claims over elevated formaldehyde levels in trailers issued by the Federal Emergency Management Agency after the 2005 hurricanes.

In a separate but related deal, four FEMA contractors that installed or maintained trailers agreed to pay $5 million.

(Copyright 2012 by The Associated Press. All Rights Reserved.)