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In re Urethane Antitrust Litigation

Citations: 913 F. Supp. 2d 1145; 2012 WL 6610878; 2012 U.S. Dist. LEXIS 180365Docket: MDL No. 1616; Case No. 04-1616-JWL

Court: District Court, D. Kansas; December 17, 2012; Federal District Court

Narrative Opinion Summary

The case involves a multi-district class action where plaintiffs accuse Dow Chemical Company of conspiring with other manufacturers to fix prices for urethane chemical products, in violation of Section 1 of the Sherman Act. The court has consolidated related cases, and after settlements with other defendants, Dow remains as the sole defendant. The plaintiffs claim that a price-fixing conspiracy occurred between 1999 and 2003. Dow's motion for summary judgment was denied, as the court found that the plaintiffs presented adequate direct and circumstantial evidence to create a genuine issue for trial. On the question of fraudulent concealment, the court considered whether acts by the alleged conspirators tolled the statute of limitations, deciding that the issue should be determined by a jury. The court evaluated the economic plausibility of the alleged conspiracy, rejecting Dow's argument that flat or decreasing prices undermined the conspiracy claim. Overall, the court found sufficient evidence of a price-fixing conspiracy, including testimony from industry executives and communications among competitors, to proceed to trial.

Legal Issues Addressed

Economic Plausibility of Conspiracy Allegations

Application: The court rejected Dow's argument that a price-fixing conspiracy was economically implausible, citing industry structure and evidence of collusion.

Reasoning: The Court concludes that the alleged conspiracy is economically plausible, highlighting the industry's concentrated oligopoly structure and barriers to entry as conducive to price-fixing motives.

Fraudulent Concealment and Statute of Limitations in Antitrust Cases

Application: Plaintiffs argued the statute of limitations should be tolled due to fraudulent concealment by conspirators, which the court found sufficient to withstand Dow's motion for summary judgment.

Reasoning: To prove this, they must demonstrate: (1) the use of fraudulent means, (2) successful concealment from plaintiffs, and (3) plaintiffs' inability to discover their claims despite due diligence.

Price-Fixing Conspiracy Under Sherman Act Section 1

Application: The plaintiffs allege a horizontal price-fixing conspiracy among competitors in violation of the Sherman Act, requiring proof of agreement, competitor involvement, price manipulation intent, and impact on commerce.

Reasoning: Section 1 of the Sherman Act prohibits contracts, combinations, or conspiracies that restrain trade, and class plaintiffs allege a horizontal price-fixing conspiracy involving Dow and other defendants, constituting a per se violation of the Act.

Summary Judgment Standards in Antitrust Cases

Application: Dow's motion for summary judgment was denied as the plaintiffs presented sufficient direct and circumstantial evidence of a conspiracy to create a genuine issue for trial.

Reasoning: Summary judgment is warranted only when there is no genuine dispute over material facts and the moving party is entitled to judgment as a matter of law.