Foam makers to pay $275.5m to settle US price-fixing suit

HOUSTON (ICIS)–Six companies agreed on Tuesday to pay $275.5m to settle allegations that they fixed prices on polyurethane foam.

The settlement agreements still need to be approved by the court.

The dispute goes back to 2010, when customers accused the foam companies of fixing prices since at least 1 January 1999. As a result, the buyers alleged they had paid too much for foam as the market was no longer competitive.

In reaching the settlements, the six producers denied the allegations made by their customers. They agreed to settle to avoid the cost of further litigation.

Under the agreements, $16m would be paid by FFP Holdings, formerly known as Flexible Foam Products.

Future Foam agreed to pay $32m, while Woodbridge would pay $50m.

Mohawk agreed to pay $98m, and FXI – Foam Innovations would pay $60m.

Hickory Springs agreed to pay $19.5m.

Other foam producers had reached settlements earlier in the litigation.

Carpenter agreed to pay $108m, while Leggett & Platt agreed to $39.8m.

Both companies denied that they fixed prices or did anything wrong.

Vitafoam had agreed to pay up to $15m. It also denied doing anything wrong.

Polyurethane foams are made with polyols and isocyanates such as methyl di-p-phenylene isocyanate (MDI) and toluene di-isocyanate (TDI).

The case is being litigated in US District Court, Northern Ohio District. The case number is 10-2196.