DSM aims to settle EPDM antitrust case with $25 million payout

ERJ staff report (DS)

Heerlen, Netherlands -- DSM Elastomers aims to settle a long-running anti-trust dispute with a group of customers in return for a payment of $25 million (USD). DSM continues to say it was not at fault.

The action relates to purcases of EPDM between 1997 and 2001, in which allegations were made that certain suppliers of EPDM jointly collaborated to fix prices. A DSM spokesman was unable to say if the settlement would be global in nature, or if it applies only to the US. He did not return calls by presstime.

The EPDM class action, pending in the United States District Court for the District of Connecticut, was vigorously litigated by both sides. DSM is now offering the settlement in exchange for a commitment from its customers that they will not enter into any further, related litigation.

The proposed class action settlement is subject to Court approval. If approved, and following due notice to the class members, the class action will be dismissed with prejudice and all claims asserted in the class action against the DSM Defendants will be released.

DSM NV is currently negotiating the sale of its Elastomers subsidiary. Pending litigation is often a stumbling block to the sale of a business, as it presents an unknown risk to potential buyers.

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Press release from DSM