Ohio AG Sues U.S. Gypsum for $17M Over Highway Sinkholes

Ohio Attorney General Dave Yost has filed a $17 million lawsuit against United States Gypsum Co., alleging the company failed to maintain underground gypsum mines beneath State Route 2, resulting in dangerous sinkholes and costly repairs.

The lawsuit claims U.S. Gypsum neglected its responsibility to stabilize the land, forcing the Ohio Department of Transportation (ODOT) to spend $16.8 million to prevent the highway from collapsing. “U.S. Gypsum’s failure… has put Ohio’s taxpayers in a multimillion-dollar hole,” Yost said. “We’re holding them accountable for the money it took to fill it and keep State Route 2 from crumbling.”

The issue dates back to 1965, when U.S. Gypsum sold land to the state for the construction of State Route 2 above its gypsum mines. The agreement required the company to maintain the land’s integrity to ensure the road’s safety. In 1977, U.S. Gypsum filed a Quit Claim Deed to withdraw its commitment without notifying or securing approval from the state, according to the lawsuit.

State Route 2 has since become a vital corridor for tourists traveling to Marblehead, Kelley’s Island, and Cedar Point near Lake Erie. However, concerns about the highway’s stability emerged as sinkholes appeared, prompting discussions between U.S. Gypsum and ODOT. Despite these talks, the company reportedly filed paperwork in the early 2000s to stop monitoring the area.

In 2013, ODOT undertook a $20 million stabilization project, injecting grout into the flooded underground tunnels to secure the highway. Despite these efforts, Yost alleges U.S. Gypsum failed to fulfill its original agreement, leaving Ohio taxpayers to shoulder the burden.

The company, which continues to operate in the construction materials industry with a factory in Ottawa County, has not commented publicly on the lawsuit.

This legal action underscores Ohio’s commitment to holding corporations accountable for infrastructure impacts that jeopardize public safety and drain taxpayer resources.

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