Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Leggett & Platt reaches tentative settlement in polyurethane foam antitrust case, (Aug 20, 2014)
Organizations Mentioned:Leggett & Platt
Furniture component supplier Leggett & Platt has tentatively agreed to pay $39.8 million to settle direct purchaser claims in an antitrust case regarding the sale of polyurethane foam, the company announced yesterday. The company notes that the settlement figure includes attorney fees and costs and that the settlement is subject to court approval.
Leggett is one of several defendants in a series of class actions involving an alleged conspiracy to fix prices for chemicals used in the manufacture of polyurethane products. The company expects to record a $39.8 million (pre-tax), or approximate $.18 per share, accrual in the third quarter for the settlement. The claim is partially related to its former Prime Foam Products business, which was sold in the first quarter of 2007. Accordingly, approximately one-quarter of the charge is expected to be reflected in discontinued operations.
The company denied all allegations, but says it settled to avoid the uncertainty, expense, and distraction of litigation. Leggett remains a defendant in other antitrust cases involving the sale of polyurethane foam.
Leggett is the leading U.S. manufacturer of components for residential furniture and bedding; office furniture components; drawn steel wire; automotive seat support and lumbar systems; carpet underlay; adjustable bed bases; and bedding industry machinery. Based in Carthage, Missouri, the 131-year-old firm is comprised of 19 business units, 19,000 employee-partners, and 130 manufacturing facilities located in 18 countries.
News: Antitrust