The Joseph Saveri Law Firm represents Plaintiffs Utah Foam Products, Inc.; NPC Coatings, Inc.; Rhino Linings Corporation, Tri-Iso Tryline LLC, and a prospective Class in an antitrust action, In re Diisocyanates Antitrust Litigation, against Bayer, Covestro, BASF, Dow Chemical Company, Huntsman, Wanhua Chemical, Mitsui Chemicals, and MCNS Polyurethanes USA Inc., and other unnamed co-conspirators.
Plaintiffs allege that Defendants and their co-conspirators engaged in a scheme to fix, raise, and maintain prices at supracompetitive levels for methylene diphenyl diisocyanate (“MDI”) and toluene diisocyanate (“TDI”) products sold in or shipped to the United States from at least January 1, 2016-present. In In re Diisocyanates Antitrust Litigation (United States District Court for the Western District of Pennsylvania), Plaintiffs seek treble damages under the Sherman Act (15 U.S.C. §§ 1, 3) and demand a jury trial.
Diisocyanates are a family of chemical building blocks primarily used to make polyurethane products. MDIs and TDIs are precursor ingredients for the manufacture of polyurethane foams and thermoplastic polyurethanes, which can be used in a wide array of products, including insulation materials for buildings and refrigerators, mattresses, upholstered furniture, car seats, clothing, mobile electronic devices, and sports equipment.
In 2014, Defendants were experiencing reduced profits in MDI and TDI products caused by lower raw materials costs and market oversupply. To stop their declining profits and increase their margins, Defendants allegedly engaged in a series of lockstep price increases and coordinated restrictions on their production. Defendants closed or suspended operations at some of their MDI and/or TDI manufacturing plants, and operated other plants at reduced capacity. Consequently, TDI and MDI product prices reached a sustained, unprecedented high level, a pattern that represents a sharp break from what existed prior to the alleged conspiracy.
In February 2018, the Antitrust Division of the United States Department of Justice (“DOJ”) caused a federal grand jury to issue subpoenas to manufacturers of MDI products in connection with a criminal investigation of price-fixing of MDI products. BASF, Huntsman, Dow, Bayer, Covestro, and Wanhua confirmed that they received subpoenas. Certain Defendants recently represented that the DOJ’s investigation was closed without further action, but Plaintiffs have not received any independent confirmation. Most of the same Defendants were involved in prior criminal and civil antitrust cases concerning conspiracies to fix MDI and TDI prices.
Please contact the firm if:
- You have knowledge of the alleged anticompetitive conduct Defendants engaged in to fix, raise, stabilize, and maintain MDI and TDI prices;
- You were affected by this conspiracy from January 1, 2016-present and are interested in becoming a class representative; or
- You would like to learn more about this antitrust litigation or our other antitrust cases and investigations.
Any information you provide will be kept strictly confidential as provided by law unless and until you agree to publicly disclose the information.