Tag Archive for Polyurethane

Dow Chemical Reaches $835 Million Settlement On Polyurethane Class Action Lawsuit

Dow Chemical Logo

Dow Chemical was the final holdout in the polyurethane litigation that has been ongoing for over a decade. It was announced, they settled the polyurethane class action lawsuit for $835 million. According to the company, they decided to settle because it was easier than dealing with unknown factors with the death of Supreme Court Justice Antonin Scalia. In their press release about the settlement, they stated

Growing political uncertainties due to recent events within the Supreme Court and increased likelihood for unfavorable outcomes for business involved in class action suits have changed Dow’s risk assessment of the situation.

The company was accused of engaging in price-fixing on products that contained polyurethane for a long period of time. Dow Chemical vehemently denied the allegations and has fought them even after juries awarded huge verdicts against them. They had an appeal before the Supreme Court where they were hoping to have the verdicts overturned. Some news outlets have reported even if the Supreme Court heard the case in Scalia’s absence, a tie would have upheld the lower court’s decision which was bad for Dow Chemical. The death of Justice Scalia caused them to reevaluate the situation and settle the lawsuit which they have been dealing with for over 10 years. This should put an end to all polyurethane related litigation because Dow was the last company fighting. All the other companies settled their lawsuits with the plaintiffs. Once news got around Dow Chemical settled this lawsuit, analysts offered positive comments about it. So the plaintiffs now have to wait for distribution of the funds to remedy the problem.

Photo Credit: Dow Chemical Logo by TheTaxHaven