Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Ohio: Polyurethane foam company excused from price fixing suit, (Feb 12, 2016)

By Greg Hammond, J.D.

The bankruptcy estates of Consolidated Bedding, Inc. and its affiliate companies have agreed to dismiss FXI Holdings, Inc. from an action alleging that FXI conspired with other polyurethane foam manufacturers to fix the prices of flexible polyurethane foam products. The federal district court in Toledo, Ohio, consequently granted dismissal of the plaintiffs’ claims against FXI with prejudice (In re Polyurethane Foam Antitrust Litigation, February 11, 2016, Zouhary, J.).

Direct purchasers of polyurethane foam products—ranging from individuals that purchased foam pillows to large corporations like Ford Motor and Serta Mattress—filed suit against some of the largest manufacturers of polyurethane foam. In particular, the direct purchasers claimed that FXI and other manufacturers participated in a conspiracy to fix the prices of flexible polyurethane foam and to allocate customers throughout the United States. They set forth two theories of liability with regard to FXI, including that: (1) FXI was liable for participating in the antitrust conspiracy due to its predecessor Foamex Innovations, Inc.’s liability; and (2) FXI was liable because, after it came into existence in 2009, it joined the ongoing conspiracy.

In granting the stipulation to dismiss, the district court ordered that each side bear its own attorney fees and costs.

The case is No. 10-MD-2196 (JZ).

Attorneys: Stephen R. Neuwirth (Quinn, Emanuel, Urquhart, Oliver & Hedges) and William A. Isaacson (Boies, Schiller & Flexner) for Direct Purchaser Class. Kimberly A. Conklin (Kerger & Hartman) and Lori A. Fanning (Miller Law) for Indirect Purchaser Class. James H. Walsh (McGuire Woods) and Deborah Pollack-Milgate (Barnes & Thornburg) for Defendants Liaison Counsel.

Companies: Consolidated Bedding, Inc.; FXI Holdings, Inc.

Cases: Antitrust OhioNews