Chinese Taishan Gypsum banned from doing business in the US

The Chinese company Taishan Gypsum Co Ltd, which was noticed in the production of low-quality drywall, was banned from doing business in the United States. The District Court for the Eastern Circuit of Louisiana points to the failure of representatives of Taishan Gypsum to appear at a meeting on July 17, 2014, which was supposed to decide on the payment of compensation by the company to homeowners affected by substandard products. The estimated total amount of compensation is $2.6 million.

The company, whose production is located in China, previously stated that the decision on the payment of compensation is not within the jurisdiction of the US courts. After this argument was refuted by the Court of Appeal, Taishan Gypsum completely withdrew from the search for solutions to the current issue, without trying to compensate for the damage caused or come to any other agreement.

Now, as a penalty for non-attendance, Taishan Gypsum is required to pay $15,000 in legal fees and $40,000 in fines.

In addition to monetary penalties, the company received a ban on any commercial activity in the United States. In case of non-compliance with the ban, the company will have to pay 25% of its profit.