Dow settles urethanes class action litigation, pays $835 millions

Dow settles urethanes class action litigation, pays $835 million

5:53 AM, 2nd March 2016
Dow settles urethanes class action litigation, pays $835 millions

MIDLAND, US: The Dow Chemical Company said that it has entered into a settlement agreement to resolve the In re Urethanes Class Action litigation, by paying the plaintiff class $835 million.

This settlement agreement is conditioned on the United States Supreme Court agreeing to hold Dow’s Petition for a Writ of Certiorari in abeyance and the subsequent approval of the class settlement by the United States District Court of Kansas. This will resolve the $1.06 billion judgment (and also resolve post-judgment interest and an anticipated award of attorney’s fees) against Dow entered in 2013.

Presently, Dow has a petition for a Writ of Certiorari pending before the United States Supreme Court seeking to set aside the $1.06 billion judgment. Dow’s petition currently is being held by the Supreme Court pending a decision in Tyson Foods, a case with a common class action issue. Dow continues to believe strongly in its legal position as expressed in its petition.

Growing political uncertainties due to recent events within the Supreme Court and increased likelihood for unfavourable outcomes for business involved in class action suits have changed Dow’s risk assessment of the situation. Dow believes this settlement is the right decision for the company and our shareholders.

While Dow is settling this case, it continues to strongly believe that it was not part of any conspiracy and the judgment was fundamentally flawed as a matter of class action law, the company said.

Further, the judgment covered alleged legacy activity between 2000 and 2003. Dow cooperated with an extensive investigation by the US Department of Justice, which closed its investigation in 2007 without taking any or proposing any action against Dow.

Dow’s position at the US Supreme Court is that the judgment violates class action law in multiple ways, notably with respect to the Supreme Court’s Walmart decision of 2011 and the Comcast decision of 2013, both authored by Justice Scalia.

© Worldofchemicals News

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