James Hardie (Harditex) class action ends with no compensation for homeowners | WATCH

More than 1000 homeowners were seeking compensation from the company, alleging it knowingly sold them defective cladding known as Harditex.

There were 376 properties involved in the class action.

Lawyers for both the homeowners and James Hardie were progressing through a 17-week trial at the High Court in Auckland, when proceedings abruptly stopped.

Today, it was announced that the parties had reached a settlement – but there would be no compensation for homeowners.

Instead, James Hardie would receive $1.25m following the settlement, there would be no admission of liability, and the case would be discontinued in its entirety.

While lawyers for the plaintiffs said the circumstances around the settlement were “confidential”, 1 NEWS understands the settlement came after the London-based litigation funder, Harbour Litigation Funding, said it would end its funding of the case.

“After approximately six years of strongly contested court proceedings, involving over 1,000 plaintiffs and numerous highly qualified experts, this is obviously a disappointing outcome halfway through the trial on liability,” said the homeowners’ lawyer, Adina Thorn.

While the homeowners would not get any compensation, they would also not incur any costs for being involved in the class action.