CARTHAGE, MO – Furniture and bedding components company Leggett & Platt agreed to pay a $39,8 million settlement in an antitrust lawsuit filed against the company over the sales of polyurethane foam.
Although L&P denies the allegations of alleged price fixing, the company settled to “avoid the uncertainty, expense and distraction of litigation.”
This claim is partially related to the former Prime Foam Products business, which L&P sold in the first quarter of 2007. Officials said about one-quarter of the charge is expected to be reflected in discontinued operations. The agreement is subject to court approval.
L&P expects to record a $39.8 million pretax charge, or about 18 cents per share in the third quarter for the settlement of the U.S. direct purchaser class portion of the polyurethane foam antitrust claims filed against the company and numerous other defendants.
Leggett remains a defendant in other previously disclosed antitrust cases involving the sale of polyurethane foam, but said they cannot determine the outcome nor the possible financial loss. Officials said they believe the remaining cases “collectively represent lower total sales of polyurethane foam from Leggett & Platt than the cases included in this settlement.”
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