Antitrust Law Daily Wrap Up, ANTITRUST—D.N.J.: Dow settles Urethane opt-out litigation for $400M, (Apr 7, 2016)

By Greg Hammond, J.D.

The federal district court in Newark has granted a stipulation to dismiss The Dow Chemical Company from a class action alleging that Dow and others conspired to fix polyurethane prices. Dow previously reached an $835 million settlement with a plaintiff class in the federal district court in Kansas City, Kansas, and has now settled the opt-out plaintiffs’ claims for $400 million (In re Urethane Antitrust Litigation, April 5, 2016, Martini, W.).

The opt-out litigation represents claims from polyether polyol products purchasers who chose not to be class members in the previously settled Urethane class action. Dow estimates that the current settlement will provide roughly $250 million in net cash payments.

Dow noted in a statement that, while it is settling the lawsuit, “it maintains its position consistent with the position in the class action that the Company never agreed with its competitors to fix polyurethane prices at any time. In fact, Dow cooperated with an extensive investigation by the U.S. Department of Justice, which closed its investigation in 2007 without taking any or proposing any action against Dow.”

The Case is No. 08-5169 (WJM)(MF).

Companies: The Dow Chemical Co.

Cases: Antitrust KansasNews