MDL Plaintiffs Seek Order Enjoining Negotiation, Payment of 'Outside' Settlements

NEW ORLEANS - The Plaintiffs' Steering Committee has filed an emergency motion asking the Chinese Drywall MDL judge to enter an order prohibiting insurers and defendants from executing outside settlements without input from or notice to plaintiffs in the coordinated proceedings. Amato, et al. v. Liberty Mutual Insurance Co., et al., No. 10-932 (E.D. La.).

The Jan. 11 motion was filed in an omnibus class action brought in U.S. District Court for the Eastern District of Louisiana against dozens of insurers and direct action defendants, who the PSC says are negotiating private deals that threaten global resolution of the drywall …