Dow Chemical Co. has been embroiled in legal disputes concerning whether or not the Michigan-based company conspired to fix urethanes—chemicals used for foam-type insulation and padding in refrigerators and upholstered furniture. A jury had found that the chemical giant had indeed worked to fix the prices of these chemicals. A lot of money was awarded to the plaintiffs in the case.
Plaintiffs tried their antitrust claims against Dow to a jury, the Honorable John W. Lungstrum presiding, in January and February, 2013. At the conclusion of the trial, the jury rendered a verdict in favor of Class Plaintiffs. The Court entered Final Judgment against Dow and in favor of the Class Plaintiffs in the amount of $1,060,847,117.00, plus interest, for purchases between November 24, 2000 and December 31, 2003.
Dow appealed the verdict and judgment. The United States Court of Appeals for the Tenth Circuit affirmed the trial court’s decisions on September 29, 2014. The Tenth Circuit’s opinion is available at the “Court Documents” link on the left side of this page. On November 7, 2014, the Tenth Circuit denied Dow’s request for rehearing.
On March 9, 2015, Dow filed a petition for a writ of certiorari in the Supreme Court of the United States, seeking further review of the verdict and judgment. The Supreme Court likely will rule on Dow’s petition in late 2015 or in the first half of 2016.
[My emphasis.]
Dow Chemical was hoping the Supreme Court would hear its annoyance with the jury’s findings and reverse the ruling. Then Antonin Scalia had to go and die.
Dow Chemical Co. said it agreed to pay $835 million to settle an antitrust case pending before the U.S. Supreme Court after Justice Antonin Scalia’s death reduced its chances of overturning a jury award.
[...]
“Growing political uncertainties due to recent events with the Supreme Court and increased likelihood for unfavorable outcomes for business involved in class-action suits have changed Dow’s risk assessment of the situation,” the company said in an e-mailed statement.
[Bold is me slow clapping Dow Chemical.]
What part Dow’s attempt to merge with DuPont has in all of this and whether or not Scalia’s death will affect how they fight for merger remains to be seen.
“Companies whose positions are based more on political philosophy than on interpretation of the law worry when the majority philosophy in sway at the court changes,” said Erik Gordon, a professor at the University of Michigan’s business and law schools who teaches classes on mass torts and class-action cases.
“It is unlikely that any nominee will be as favorable to business as Justice Scalia was,” Gordon said in an e-mail. “The anti-business wing will carry more decisions.”
We can only hope that big business doesn’t continue to get away with abuse of power unchecked.