US Carpenter, Leggett & Platt to settle PU foam price-fixing suit

HOUSTON (ICIS)–Polyurethane foam producers Leggett & Platt and Carpenter have agreed to settle a price-fixing lawsuit filed against them by customers who bought material directly from the companies, according to documents obtained on Wednesday.

Under the settlement agreements, Carpenter will pay $108m, while Leggett & Platt will pay $39.8m.

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

Leggett & Platt said it agreed to settle the lawsuit to avoid the uncertainty, costs and distractions of the litigation.

The court is scheduled hold a hearing on the Leggett & Platt settlement agreement on 3 February.

The court has yet to schedule a final-approval hearing of Carpenter settlement agreement.

Carpenter and Leggett & Platt were among several polyurethane producers accused of fixing prices on polyurethane foam.

Others include Flexible Foam Products, Future Foam, FXI – Foamex Innovations, Hickory Springs Manufacturing, Inoac, Mohawk Industries, Otto Bock Polyurethane Technologies, Plastomer, Scottdel, Valle Foam and the Woodbridge Group.

Valle Foam and Vitafoam had reached settlements.

Otto Bock had both denied the allegations.

In the lawsuit, the foam buyers allege that the producers had been fixing prices since at least 1 January 1999. As a result, the buyers said they had paid too much for foam as the market was no longer competitive.

Polyurethanes 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.