Toledo, Ohio – A final settlement looks set to be reached in the flexible polyurethane foam antitrust case between direct foam buyers and defendants for a total of $273m.
The defendants in the case which started in 2010, will make the following payments under the proposed settlement in Case: 1:10-MD-02196-JZ:
- FFP Holdings, LLC ($16m);
- Foamex Innovations, Inc ($60m);
- Future Foam, Inc ($32m);
- Hickory Springs Manufacturing Company ($19.5m),
- Mohawk Industries, Inc ($98m);
- Woodbridge Foam Corporation, Woodbridge Sales & Engineering, Inc; and Woodbridge Foam Fabricating, Inc ($50m).
Lawyers for the Direct Purchasers which bought the action said the new settlement “not only meets the standards for preliminary approval… they constitute a very excellent result for the Class.”
Future Foam has already paid $25m into an escrow account and will pay a further $7m on or before 20 March 2016.
Hickory Springs has paid $3m in to an escrow account, $2.5m will be paid within 10 days of a settlement being approved by the court, $7m will be paid before 31 January 2016 and $7m will be paid on or before 31 January 2017.
Mohawk has paid $98m into an escrow account as a lump sum.
Woodbridge has paid $9m into an escrow account, $9m on or before 15 November 2015, $14m on or before 15 November 2016 and $18m on or before 15 November 2017.
According to documents submitted to Court and seen by UTECH-polyurethane.com. The amounts that Future Foam, Hickory Springs and Woodbridge were based on the companies’ ability to pay. If Direct Purchasers had “succeeded at trial against these defendants and obtained a high damages award very likely could have caused bankruptcy, which would have required the Class – with unsecured claims – to compete against other creditors (many of which may have been secured) for a share of the Defendant’s available assets.”
The time table for the resolution of the case between the Direct Purchasers and the foam companies is as follows:
- 29 May 2015: Last day for final approval of notices and claim form
- 15 June 2015: First publication of Class Notice
- 17 June 2015: Mailing of Class Notice
- 24 July 2015: Motion for final settlement approval
- 15 Sept 2015: Claim form submission deadline and comment/object to settlement
- 13 Oct 2015: Final settlement approval hearing/ fairness hearing.
The Direct Purchasers have previously settled with Vitafoam Inc ($9m and Vitafoam Products Canada Limited ($15m); Leggett & Platt Inc ($39.8m); Carpenter Co, ER Carpenter LP and Carpenter Holdings ($108m in total), which have been approved by the court.
The case continues as the class of Indirect Purchasers is pressing its claim and is fighting attempts to be combined into another case. .