National Gypsum Company

National Gypsum’s History With Asbestos

National Gypsum began in 1925 and started using asbestos in its products in 1933. Gold Bond, named for a $5,000 “gold bond” guarantee asserting its premium wallboards were superior to competitors’, became its most well-known product. Under this brand, National Gypsum manufactured many building materials containing asbestos.

The company acquired Universal Gypsum and Atlantic Gypsum and produced materials under three major brands: Gold Bond, ProForm and PermaBase. National Gypsum used asbestos in at least 30 different building products.

The company stopped using asbestos in the early 1980s. By 1985, National Gypsum faced roughly 4,500 asbestos-related lawsuits from people exposed to its products. Asbestos exposure is the primary cause of mesothelioma and can also lead to serious diseases such as lung cancer and asbestosis.

National Gypsum Asbestos Products

National Gypsum produced many asbestos-containing building materials for walls, ceilings and siding. The company added asbestos to these products to make them durable, fire-resistant and better at insulating. Workers and installers handling these materials faced an increased risk of exposure.

National Gypsum’s Top Asbestos-Containing Products

• Chromatex Siding Shingles
• Insul-Best Panels
• Joint Cement
• Panelectric Groove Fill
• Perfect Spray
• Perfo-Lyte Acoustical Plaster
• Rockwall Acoustical Plaster
• Spackling Compound
• Topping Cement
• Woodgrain Siding Shingles

Workers handling or cutting these materials risked releasing asbestos fibers into the air. Asbestos exposure could occur during installation, renovation or repair, making safety precautions and professional removal critical.

Occupational Asbestos Exposure From National Gypsum Products

Workers who made National Gypsum’s asbestos products faced a high risk of breathing in toxic asbestos fibers. Employees in the company’s factories could inhale fibers during production, putting them at risk of mesothelioma. 

Construction workers who installed, cut or disturbed these products also faced higher exposure. A comprehensive review from 2024 of construction workers confirmed the construction sector has the highest exposure to asbestos compared with other industries.

Jobs at Higher Risk 

• Building maintenance workers
• Carpenters
• Cement workers
• Construction workers
• Demolition crews
• Drywall workers
• Insulators
• Painters
• Pipefitters
• Sheetrock workers

Drywall workers were especially at risk before the mid-1970s, when joint compounds contained chrysotile asbestos. Sanding these compounds released the most fibers into the air. General construction workers and DIY home renovators could also be exposed.

When workers can unintentionally bring home asbestos dust on their clothing, hair or skin, their loved ones may experience secondary exposure. Similar to primary exposure, secondary exposure can cause mesothelioma or other asbestos-related diseases.

Mesothelioma Lawsuits Involving National Gypsum

National Gypsum was facing about 45,000 unresolved asbestos lawsuits by 1992. Many of these cases were settled out of court or dropped. 

Notable Asbestos Lawsuits Against National Gypsum 

• $8.4 million: National Gypsum paid this award in 1987 to school districts in 19 states for asbestos-related damages.
• $6 million: A jury in El Paso, Texas, awarded this amount in 1999 to the family of Patricio Sanchez Jr., a school janitor who died from mesothelioma after decades of exposure to asbestos-containing joint compounds, including National Gypsum’s Gold Bond products. 
• $114,800: Mercer University sued National Gypsum and 3 other companies in 1985 for selling asbestos-containing materials. The money was used to cover construction costs.

When the company filed for bankruptcy in 1990, all lawsuits were paused. In 1993, an asbestos trust fund was set up to handle these claims. Since then, the trust has handled all asbestos-related claims.

National Gypsum Asbestos Trust Funds

National Gypsum joined the industrywide Wellington Agreement in 1985, creating the National Claims Facility. This voluntary system allowed companies and insurers to handle claims together while letting individuals sue in court. Compensation varied by case.

Asbestos trust funds differ because they form when a company files for bankruptcy. Claims go through the trust instead of the courts, and payments are fixed based on the type of asbestos-related disease. Trusts often pay a percentage of the claim’s full value to preserve funds.

The National Claims Facility ended after three years. Facing more than $1 billion in asbestos-related debt, National Gypsum filed for bankruptcy in 1990. The company emerged in 1993 and established the National Gypsum Corporation Settlement Trust with over $5 million in cash and $600 million in insurance to handle future claims.

By 1997, the trust lacked enough funds. National Gypsum filed for bankruptcy again in 2002 and created the National Gypsum Company Bodily Injury Trust in 2003 with $347 million to process claims. Today, the trust pays claimants 41% of their requested amount, higher than most other asbestos trusts.

Legal Help for Survivors Exposed to National Gypsum’s Asbestos

If you have mesothelioma or lung cancer from exposure to National Gypsum’s asbestos products, an experienced mesothelioma lawyer can assist you in pursuing compensation for medical expenses and other costs. There are often deadlines for filing claims with asbestos trusts and an attorney can ensure your claim is properly filed on time.

Patient Advocates at The Mesothelioma Center are available around the clock to support you and your family. They answer questions, connect you with medical experts for second opinions or treatment, refer you to legal professionals experienced with these cases and provide ongoing support throughout your mesothelioma journey.

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