The Dow Chemical Co. has agreed to pay $400 million in a settlement agreement with plaintiffs who opted out of a urethanes class action lawsuit related to price-fixing.
The $400 million would end up being $250 million in net cash payments to 11 plaintiffs, according to Dow spokesperson Rachelle Schikorra. The difference between those amounts is related to tax treatments, she said.
“Dow believes this settlement is the right decision for the company and its shareholders,” Schikorra wrote in an email.
A press release from the company states the “Opt-Out” litigation represents claims from purchasers who elected not to be class members in the previously settled urethanes class action matter.
The Daily News reported in 2013 that plaintiffs in the urethanes class action matter claimed Dow fixed prices for urethane products with other companies. Dow sought a jury trial and was ordered to pay $1.06 billion in damages as part of the case. Earlier this year, Dow agreed to pay a class settlement of $835 million to this group of plaintiffs with a condition of the U.S. Supreme Court agreeing to hold Dow’s petition for a writ of certiorari in abeyance and the subsequent approval of the class settlement by the U.S. District Court of Kansas. The writ of certiorari sought to set aside the $1.06 billion judgment.
“Dow maintains its position that the company never agreed with its competitors to fix polyurethane prices at any time,” Schikorra wrote in an email. “Dow cooperated with an extensive investigation by the U.S. Department of Justice. The DOJ closed its investigation in 2007 without taking or even proposing any action against Dow.”