THE US’ largest chemical company, Dow, has agreed a legal settlement of US$400m to customers alleging the company colluded with competitors to fix the price of urethane.
The latest settlement sum is intended for customers who opted out of the long-running class-action law suit in which Dow paid out US$835m in February, after the death of US Supreme Court judge Antonin Scalia made victory in the case less likely.
The opt-out customers’ complaint is almost identical to the class-action suit, except the class-action suit alleged price fixing occurred between 1999 and 2003, whereas the opt-out case alleged price-fixing began in 1994, and continued through 2003.
The complaints alleged Dow conspired with its competitors to overcharge clients purchasing polyurethane foam materials used in cars, packaging and furniture upholstery.
Despite settling both cases, Dow said in statement that the company maintains that it “never agreed with its competitors to fix polyurethane prices at any time.
“Based on the risk assessment and potential outcomes, Dow believes this settlement is the right decision for the company,” the statement continued.
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