US: Foam makers face $9B fine unless SCOTUS steps in

A group of flexible foam companies found to have conspired to fix prices could face up to $9 billion in fines unless the US Supreme Court steps in, say reports.

The dispute stems from a ruling by the US 6th Circuit Court of Appeals, which allowed separate classes of direct and indirect purchasers of polyurethane foam to sue for damages from the foam companies found to have violated antitrust law. But the defendants, which include Woodbridge Foam and Carpenter, have appealed the decision to the Supreme Court, claiming that if the various class actions are allowed to proceed they could face up to $9 billion in fines, paid out to “millions of class members with nothing in common other than the fact that they purchased products containing polyurethane foam.”

The standards for certifying each separate class, the companies argue, are incompatible with each other.

According to reports, Dow Chemical submitted documents to the Supreme Court in favor of Woodbridge et al. The chemical conglomerate is also said to be planning its own appeal to the Court to overturn an antitrust fine for its alleged role in price-fixing chemicals used in the foam.

Full Content: Rubber News

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