Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Dow agrees to $835M settlement in urethane price fixing litigation, (Feb 26, 2016)

By Michael Menzhuber, J.D., LL.M.

The Dow Chemical Company has entered into a settlement agreement to pay the plaintiff class $835 million to resolve claims that the company participated in a conspiracy with other chemical producers to fix prices for chemicals used in the manufacture of polyurethane products, the company has announced (In re Urethane Antitrust Litigation, Dkt.No. 04-1616-JWL). The settlement will resolve the $1.06 billion judgment as well as post-judgment interest and an anticipated award of attorney fees against Dow.

In February 2013, a class of direct purchasers of several types of chemicals used to manufacture polyurethanes prevailed in its claim that Dow participated in a conspiracy to fix prices for these chemicals.

Dow currently has a petition for writ of certiorari pending before the U.S. Supreme Court seeking to set aside the $1.06 billion judgment. The petition is being held by the Supreme Court pending a decision in Tyson Foods v. Bouaphakeo, a case with a common class action issue.

Therefore, in addition to conditioning it settlement agreement on the subsequent approval of the class settlement by the district court, Dow is also conditioning the settlement agreement on the Supreme Court agreeing to hold Dow’s petition in abeyance.

Companies: Dow Chemical Company

News: Antitrust