WASHINGTON (dpa-AFX) - Leggett & Platt (LEG) said it has reached a tentative agreement to settle U.S. polyurethane foam direct purchaser class portion of antitrust cases for $39.8 million, pre-tax. Third quarter earnings per share impact is expected to be about $0.18 per share.
This claim is partially related to the former Prime Foam Products business, which was sold in the first quarter of 2007. Accordingly, approximately one-quarter of the charge is expected to be reflected in discontinued operations. Apart from this charge, the company reiterated the underlying full year EPS guidance issued in July.
As previously disclosed, Leggett & Platt, along with many other companies, is a defendant in a series of civil antitrust lawsuits involving the sale of polyurethane foam. The company continues to deny all allegations in all of the cases, but has reached a tentative settlement in the U.S. direct purchaser class cases to avoid the uncertainty, expense and distraction of litigation. The company has agreed to pay a total amount of $39.8 million, including plaintiff attorneys' fees and costs. The settlement is subject to Court approval.
Leggett remains a defendant in other previously disclosed antitrust cases involving the sale of polyurethane foam.
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