Two sets of lawsuits over alleged price-fixing consolidated; Court to decide if PU chemicals cases should be class actions-Rubber & Plastic News

Rubber & Plastic News-February 13, 2006

Two sets of civil lawsuits involving allegations of polyurethane chemicals price-fixing have been consolidated in Kansas City federal district court for pretrial motions, according to attorneys involved in the actions.

The two sets of cases-which are in Kansas City to begin consideration of whether they should be certified as class actions-are referred to generally as the "polyester polyol" and "polyether polyol" cases, according to Charles German of the Kansas City firm of Rouse Hendricks German May. The chemicals are components used to produce polyurethanes.

German is acting as local counsel in Kansas City for a Washington law firm defending Lyondell Chemical Co. in the polyether-polyol cases. Rouse Hendricks German May is one of several Kansas City law firms involved in the court actions, on both the plaintiffs' and defendants' sides.

There were about a dozen cases involving polyether polyol set to begin, though that number may be lower now, German said. The "Kansas City Business Journal" said there were more than 20 lawsuits consolidated in the Kansas City court altogether.

Price-fixing lawsuits involving rubber and polyurethane chemicals, carbon black and EPDM rubber burgeoned in the wake of U.S. and European Union government investigations that began in late 2002. Executives of Crompton Corp. and Bayer A.G. pleaded guilty to conspiracy, and lawsuits against these and other companies numbered...

Byline: Miles Moore