$2.6M deal to settle FEMA mobile home claims
NEW ORLEANS - Companies that manufactured mobile homes for FEMA after Hurricane Katrina have agreed to pay $2.6 million to resolve thousands of claims the temporary shelters exposed Gulf Coast storm victims to potentially dangerous fumes.
Attorneys for plaintiffs and roughly two dozen mobile home makers and their subsidiaries on Friday asked a federal judge in New Orleans to approve the proposed class-action settlement.
The deal could benefit several thousand families who lived in the temporary shelters and claim they were exposed to dangerous levels of formaldehyde. The chemical commonly found in building materials can cause breathing problems and is classified as a carcinogen.
The settlement doesn't involve claims for residents who lived in FEMA travel trailers, which housed the majority of storm victims.