Fact checked and legally reviewed by Daniel Wasserberg • Contributor & Legal Advisor

Updated

The USG Asbestos Trust was formed on June 15th, 2006, and began accepting claims in February 2007. 

The trust provides compensation for asbestos injuries related to all USG products. Anyone injured by USG products is eligible for financial compensation from the United States Gypsum Asbestos Trust Fund.

Like most asbestos trust funds, the USG trust only pays a percentage of each settlement value to ensure it has enough funds to compensate all victims.

The USG payment percentage is currently set at 12.7% but is under reconsideration by the trustees as of June 2024.

See if you qualify for compensation from the U.S. Gypsum asbestos trust fund today.

Key Information

  • USG invented the first commercially viable drywall product, Sheetrock, launched in 1917. Unfortunately, many of their popular building materials were contaminated by asbestos.
  • The USG asbestos trust’s payment percentage, initially 45%, has been reduced over time. The current payment percentage is 12.7%.
  • The USG Trust also handles claims for A.P. Green, a manufacturer of refractory products acquired in 1967.
  • The top occupations impacted by USG’s asbestos-containing products are roofers, shipyard workers, contractors, construction workers, and plumbers.

United States Gypsum & Asbestos Exposure

Formed from the merger of 30 independent gypsum and plaster companies, USG, also known as the United States Gypsum Corporation, is the largest distributor of wallboards nationwide and the largest manufacturer of gypsum products in North America. 

The company also makes other building products, including joint compound, plasters, and paints.

From 1920 to 1978, asbestos was a primary ingredient in many of the company’s most popular products, including Sheetrock brand gypsum panels and Fiberock brand panels.

In 1967, USG acquired A.P. Green, a manufacturer of refractory products that also used asbestos in many of its products. 

Despite the results of independent research conducted by USG from 1930 to the late 1940s, which revealed the asbestos-cancer connection, USG continued to market their products as safe and non-toxic.

USG Asbestos Lawsuits

Early on, the United States Gypsum Company tested the ill effects of asbestos dust. In the early 1930s, the company employed a laboratory to study the effects of industrial dust, including asbestos. 

Some research indicates the company knew of the asbestos-cancer connection as early as the 1940s but continued to market its products as safe, exposing thousands of people to their asbestos-contaminated products. 

This willful negligence left them legally accountable to many people. In the early 1990s, more than 45,000 USG workers or family members filed asbestos-related lawsuits

  • In one case, the city of Baltimore sued USG and won $8.16 million in compensatory damages and $4 million in punitive damages for removing asbestos from the city’s police headquarters. 
  • The State of Hawaii also won a $12 million settlement from USG in 2001 to compensate for property damage to state buildings.

USG filed for bankruptcy protection in 2001, and the court approved the reorganization in 2006. From that, the asbestos trust was born. It began accepting claims in 2007.

Associated Companies 

The United States Gypsum Company was formed by a merger of 30 individual gypsum and plaster companies.

USG’s activities included processing, manufacturing, and distribution. In 1967, they acquired A.P. Green Industries, another manufacturer of asbestos-contaminated products.

The USG trust also handles claims made against this company. USG is a multinational company with many subsidiaries. In April 2019, they joined Knauf Group, the largest gypsum manufacturer in the world. 

Companies Associated With the United States Gypsum Corporation:

  • A.P. Green Industries
  • Canadian Gypsum Company 
  • Donn® Incorporated
  • Knauf
  • L&W Supply Corporation
  • Sackett Plaster Board Company
  • Yeso Panamericano

High-Risk Jobs Associated With USG

USG did not warn its employees or customers about the potential problems with asbestos.

Between 1920 and 1978, most of USG’s asbestos-containing products were used in the manufacturing, construction, and remodeling industries.

Even with laboratory testing and medical professionals warning of the dangers, USG continued aggressively marketing unsafe products as harmless and non-toxic. This robbed employees and consumers of the opportunity to protect themselves from airborne asbestos fibers. 

Exposed to Asbestos

See if you qualify for compensation from the United States Gypsum asbestos trust fund today.

Start Your Free Claim

Jobs at Highest Risk for Asbestos Exposure

Ship Maintenance/Ship Builders

Everyone who worked on, off, or near ships was in danger of asbestos exposure. USG asbestos-containing products used in ships and shipyards include wall insulation and roofing products.

Anyone who installed or removed these products was likely exposed.

Roofers

USG roofing materials, shingles, and sidings were widely used across the United States because they resisted heat, fire, and other dangers. USG never warned roof installers of the risks of asbestos in USG roofing materials.

Other products, including stucco finish coats, included asbestos as a main additive.

Construction Workers/Contractors

In addition to siding and shingles, asbestos was widely used in cement products, including trowel and sprayed acoustical plaster.

Construction workers and contractors are at high risk for developing asbestos-related diseases from USG products used during construction, remodeling, and remediation.

Plumbers/Pipefitters

In addition to using asbestos-containing products in new construction environments, plumbers and pipefitters working in renovation or repair environments may be at risk for exposure to existing asbestos-containing products.

Other At-Risk Jobs

  • Carpenters
  • Demolition workers
  • Drywall installers
  • Electricians
  • Factory workers
  • Handymen
  • HVAC servicers
  • Maintenance workers

Asbestos Products Used at US Gypsum

USG used asbestos in many of its most popular products. Chosen for its low cost and heat- and fire-resistant qualities, from 1920 to 1978, USG advertised the inclusion of asbestos as a benefit of its products rather than a warning against them. 

Top Asbestos-Containing Products Used at USG:

  • Asbestos Felts & Covering
  • USG Asbestos Paper
  • Audicote Acoustical Plaster
  • Bondcrete
  • USG Ceiling Tile
  • Cement Plaster Regular
  • Corrugated Cool Felt Air C. Covering
  • Corrugated Wool Felt Covering
  • Durabond 90 Joint Compound/Durabond Compound
  • Firecode Plaster
  • Glatex Asbestos Cement Siding
  • Gypsum Woodfibre Plaster
  • Hi-Lite Acoustical Plaster
  • Imperial Gypsum Cement Plaster
  • Imperial Gypsum Plaster
  • Imperial Tape
  • Oriental Exterior Stucco Finish Coat
  • Perf-A-Tape Compound
  • Perf-A-Tape Joint System
  • USG Pipe Covering
  • Pyrobar Mortar Mix
  • Pyrobestos PC Board & Stack Lining
  • Range Boiler Jackets Pipe Covering
  • Red Top Cement Plaster
  • Red Top Gypsum Plaster
  • USG Rigid Block Insulation (Generic)
  • USG Roofing Products
  • Sabinite Acoustical Plaster
  • USG Siding Shingles
  • USG Spray Texture Paint/Finish
  • Sheetrock Texture
  • Spraydon Fireproofing Plaster
  • Structo-Lite Perlited Gypsum Plaster
  • USG Super Hard Spray
  • Texolite
  • Textone
  • USG Texture Paint
  • USG Thermalux (Generic)

The Formation of the USG Asbestos PI Settlement Trust

Between the early 1920s and late 1970s, many of USG’s products contained asbestos because it was an inexpensive additive that was heat-, fire-, and chemical-resistant.

Through these products, USG employees and others were exposed to airborne asbestos. USG used wide-reaching public relations campaigns to convince the public that asbestos was safe.

A surge in asbestos-related lawsuits in the 1990s, led by USG employees and their families, began to take a significant financial toll on the company.

USG filed for Chapter 11 bankruptcy protection in 2001, and the reorganization was approved in 2006. The resulting asbestos trust began accepting claims in 2007.

Settlement and Payment Percentage in 2024

The USG Trust pays claims at 12.7% of the settlement amount. Asbestos compensation amounts are limited per person to ensure there is enough money to pay for future claims.

As of June 2024, the current payment percentage is undergoing review and is subject to change. 

Claims are handled on a first-in, first-out (FIFO) basis, and the USG Trust has a maximum annual payment (MAP) that it cannot exceed.

If the MAP is met before the year ends — this occurred most recently in 2021 — all claims must wait until January of the following year to be paid, so it’s essential to move quickly.

When filing for a review with the USG trust, claimants can choose from two payment schedules: expedited and individual. 

USG Trust Payment Amounts

DiseaseScheduled Value
Mesothelioma (Level VIII)$38,750
Lung Cancer 1 (Level VII)$15,000

Understanding the Different Review Processes

The trust pays claims based on several different review processes. Both individual review and expedited review have strengths and drawbacks.

Choosing which review process is right for you requires careful consideration. Claimants may benefit from legal advice when making this critical choice.

Expedited Review (ER)

Expedited review is the fastest and simplest way to recover funds from a trust. Through expedited review, anyone who meets the medical and exposure criteria and can supply the requisite supporting documents is ensured a guaranteed settlement amount, called the scheduled value.

Claimants who need immediate financial support to pay pressing medical bills and other expenses stemming from their diagnosis may want to consider an expedited review.

Individual Review (IR)

In an individual review, the trustees adjust the amount awarded based on factors that impact the severity of illness.

Some examples of these factors include: 

  • Industry of exposure 
  • The claimant’s age 
  • Degree of disability 
  • Employment status 
  • How the illness has disrupted their household
  • Other settlements and verdicts in similar claims
  • How much the medical claims deviate from the established medical criteria for the disease level 

Individual review claims take longer to process and are handled after expedited review claims submitted on the same day.

While they often yield a higher settlement amount than ER claims, the final settlement amount is not guaranteed.

Individual review is best for those who can wait for payment, tolerate uncertainty, and want to try and maximize their compensation.

Eligibility Requirements for the United States Gypsum Asbestos Trust

Before receiving a settlement from a trust, claimants must prove their eligibility. There are two primary types of eligibility requirements — medical and exposure — and both must be supported by extensive documentation. 

Fact

The statute of limitations for asbestos personal injury claims is short. In most states, the statute of limitations allows claimants 2 to 3 years after medical diagnosis to begin filing. A legal professional may be able to help jumpstart the claims process so that clients meet this critical deadline.

Medical Requirements

  • Diagnosis of a scheduled condition by a physician or a pathologist 
  • Evidence of the illness in the form of X-rays, CAT scans, pulmonary function tests, pathology reports, or other medical tests
  • A letter from a physician showing a causal relationship between the illness and the asbestos exposure
  • A 10-year latency

Exposure Requirements

  • The exposure occurred before December 31, 1982, to asbestos or asbestos-containing products supplied, manufactured, installed, maintained, or repaired by USG or a subsidiary for which it is responsible.
    • In the case of A.P. Green claims, exposure must have occurred on or after January 2nd, 1968.
  • Significant occupational exposure for at least five years (cumulative) in an industry where they frequently handled raw asbestos or manufactured, installed, altered, or repaired USG asbestos-containing products. Those who worked adjacent to environments where such work occurred may also be eligible.  

Both medical and exposure criteria must be supported by significant documentation, which can take time, energy, and expertise to collect. If the proper documentation is not provided or the statute of limitations passes, a claim will not succeed.

Filing a Personal Injury Claim Against US Gypsum

Making an asbestos trust fund claim requires significant documentation to prove your case. Submitting incomplete or incorrect information can cause a loss of compensation or even denial of your claim.

To file a claim against the U.S. Gypsum Asbestos Trust, claimants must take several steps:

  1. File a claim form
  2. Choose which review process their claim will undergo
  3. Provide the required documentation for their claim type
  4. During the review process, the trust may request additional documentation or clarification 
  5. If the claim is successful, agree to the offered liquidation amount

Exposed to Asbestos

See if you qualify for compensation from the United States Gypsum asbestos trust fund today.

Start Your Free Claim

Loved Ones & Family Members 

Filing a claim with a mesothelioma trust fund can be time-consuming and tricky, especially proving your exposure to the level required by the trust. Claimants — who may be the victims themselves or their loved ones — deserve to focus on pressing matters of health and well-being, not paperwork. 

Consulting an experienced mesothelioma trust fund attorney who can help guide you through the process may be able to help you or your loved one receive compensation for asbestos-related injuries.

To learn about your options, contact us today.

Common Questions About U.S. Gypsum Company

What percentage does the U.S. Gypsum Asbestos Trust pay?

The USG Asbestos Trust pays 12.7% of the settlement value. As of June 2024, the trustees are reconsidering this payment percentage.

What is the lawsuit against the National Gypsum Company about?

In the 1940s, USG brought four suits against the National Gypsum Company and several other defendants for infringement of its patent rights. 

When did USG stop using asbestos in its products?

USG stopped using asbestos in its products in 1978.

Who owns the U.S. Gypsum company?

In April 2019, USG became part of Knauf Group, the world’s largest manufacturer and distributor of gypsum products.

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Written & Legally Reviewed By

Daniel Wasserberg

Attorney and On-Site Legal Advocate

Daniel Wasserberg was a New York metropolitan area “Super Lawyer Rising Star” from 2013 to 2018 (attorneys under age 40), and a Super Lawyer in 2019. In 2017, Daniel was named a “Top 100 Civil Litigator” by the National Trial Lawyers organization. This recognition is rarely awarded to attorneys under the age of 40. Daniel is proud to call himself a Trial Lawyer, and is often asked to speak at gatherings of the nation’s leading attorneys, from both sides of the bar.

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