Foam Producers Agree to Pay Combined $275.5 Million in Antitrust Suit

Toledo, OH, May 20, 2015—Six foam producers have agreed to pay a combined $275.5 million to settle lawsuits accusing them of conspiring to fix prices of polyurethane foam, according to Reuters.

Mohawk Industries agreed to settle for $98 million; Foamex Innovations Inc. for $60 million; Woodbridge Foam Corp. and affiliates for $50 million; Future Foam Inc. for $32 million; Hickory Springs Manufacturing Co. for $19.5 million; and FFP Holdings Inc. for $16 million.

On May 19, purchasers of the foam asked U.S. District Judge Jack Zouhary in Toledo, Ohio to approve the preliminary settlements, which combined with earlier accords would boost their total recovery to $433.1 million.

Polyurethane foam is used as cushioning and insulation to make such products as automobile seats, carpet underlay and furniture.

Producers of such items accused foam manufacturers of violating the federal Sherman antitrust law by conspiring to coordinate the timing and size of price increases.