The Jury Is In: Dow Ordered To Pay $400 Million In Price-Fixing Class Action Lawsuit

KANSAS CITY, KS – February 25, 2013 – A seven-member federal jury in Kansas City has decided that Dow Chemical Company conspired with other corporations to fix urethane product prices. The case involved a wide range of urethane-based chemicals used in making foam products found in cars, furniture, and packaging materials.

Dow was the only defendant not to settle in the case, which began in 2005. Dow denied the allegations, maintaining there were legitimate business reasons for the evidence the plaintiffs cited as proof of their claims.

Some of the plaintiffs in this case are also acting as defendants in an ongoing federal lawsuit in Ohio where their customers have alleged that they conspired to fix, raise, maintain and/or stabilize prices charged for polyurethane foam sold in the U.S., violating the antitrust law.

In the Dow case, the plaintiffs were buyers of the urethane-derived products and sought $1 billion in damages for a five-year conspiracy, although Dow was not found liable for the full five years. On February 20th, 2013, after a two-day deliberation, the jury awarded the plaintiffs $400,049,039. The trial began in January of this year.

If the judge overseeing the case approves the verdict, the amount awarded could triple to more than $1.2 billion under the Sherman Act. The Act prohibits certain business activities that federal government regulators deem anticompetitive and forms the basis for most antitrust litigation by the U.S. federal government.

Other defendants who were named in the case have settled. Bayer AG agreed to pay $55 million in 2006, Huntsman International LLC agreed to pay $33 million in 2011, and BASF Corp agreed to pay $51 million. Upon their settlements, none of the companies admitted any wrongdoing.

Dow has expressed disappointment in the outcome of the trial and is currently evaluating all of their options, including appeal. David Bernick, an attorney for Dow, stated he would seek to dismiss the lawsuit in a post-trial motion.

To view the court documents, please visit the link provided below.