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BASF to pay $51m to settle US isocyanates price-fixing lawsuit

Zoom  Zoom Issue Date:2011-09-26   Source:PUWORLD   Browse:1273

HOUSTON (ICIS)--BASF had no immediate comment on Thursday regarding its proposal to pay $51m (€37m) to settle a class-action lawsuit accusing it of fixing prices.

 

In proposing the settlement, BASF denied the price-fixing allegations.

 

According to the proposed agreement filed in court, BASF said it was confident about its ability to challenge the claims, but it agreed to settle the case to avoid the cost, inconvenience and distractions that would come with prolonging the litigation.

 

The proposal is pending approval in the US District Court, district of Kansas.

 

If approved, Dow Chemical will be the sole producer fighting the price-fixing lawsuit.

 

The lawsuit was filed in 2004, and it accused Huntsman, Bayer, BASF, Dow and LyondellBasell of fixing prices. The complaint covered propylene oxide (PO)–based polyether polyols; methyl di-p-phenylene isocyanate (MDI); and toluene di-isocyanate (TDI) that were purchased from 1 January 1999 through 31 December 2004.

 

Earlier this year, Huntsman agreed to pay $33m to settle the lawsuit.

 

Netherlands-based LyondellBasell has also proposed settling the lawsuit. However, it would pay nothing.

 

In 2006, Bayer agreed to paid $55.3m to settle the allegations. 

 

In all, the isocyanates customers have reached $139.3m in settlements with the producers.

 

Meanwhile, a separate price-fixing lawsuit had been filed against many of the isocyanates customers. These customers used the isocyanates as feedstock to produce polyurethane foam.

 

The buyers of polyurethane foam accused the producers of fixing prices. That lawsuit is still pending in US District Court, northern Ohio district.

 

 
 
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