Carpenter Co. Reaches Polyurethane Foam Price-Fixing Settlement
By Anne Bucher
November 13, 2014
Carpenter Co., Carpenter LP and Carpenter Holdings Inc. have agreed to pay $108 million to direct purchasers to settle a class action lawsuit alleging the companies engaged in an anti-competitive scheme to fix the prices of flexible polyurethane foam. Carpenter is the world’s largest manufacturer of foam products used for “comfort cushioning,” according to court documents.
On Wednesday, the direct purchaser plaintiffs filed a motion asking for preliminary approval of Carpenter’s class action settlement, arguing that the deal is “a substantial and highly beneficial settlement for the class.” The direct purchasers include a variety of foam, carpet and packaging companies. They alleged the defendants had conspired to fix the prices of polyurethane foam since at least 1999.
Polyurethane foam is widely used as insulation and cushioning in a variety of products including packaging, flooring, bedding and vehicles. Following a raid of several major foam makers’ offices in 2010 by the FBI and European Commission, a number of class action lawsuits were filed. These foam antitrust class action lawsuits were eventually consolidated into multidistrict litigation (MDL), which is titled In re: Polyurethane Foam Antitrust Litigation.
In 2011, a consolidated class action lawsuit complaint alleged the defendants coordinated the timing and amount of price increases on polyurethane foam through phone calls, letters and in-person meetings.
According to the class action settlement documents, Carpenter has already paid $20 million in cash, and will make an additional payment of the remaining $88 million within 10 days after the deal receives final approval. In addition, Carpenter has agreed to provide two current employees who will verify company documents at trial, which the direct purchaser plaintiffs believe will help with their case.
According to the motion seeking preliminary approval of the Carpenter foam price-fixing class action settlement, notice of the deal will be sent out at the end of this month.
Carpenter’s class action settlement was announced three months after furniture components producer Leggett & Platt Inc. reached a nearly $40 million deal to resolve similar allegations. Two years earlier, Vitafoam Inc. and Vitafoam Products Canada Ltd. agreed to pay up to $15 million to settle the foam price-fixing class action lawsuit.
Further information about the Carpenter foam price-fixing class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.
The direct purchasers are represented by Quinn Emanuel Urquhart & Sullivan LLP and Boies Schiller & Flexner LLP.
The Foam Price-Fixing Class Action Lawsuit is In re: Polyurethane Foam Antitrust Litigation, Case No. 1:10-md-02196, in the U.S. District Court for the Northern District of Ohio.
http://topclassactions.com/lawsuit-settlements/lawsuit-news/44061-carpenter-co-reaches-polyurethane-foam-price-fixing-settlement/