Bayer settles rubber chemicals, EPDM class actions

San Rafael, Califronia - In mid-September, Bayer AG announced it has set aside $282 million to settle civil lawsuits in the US pertaining to price-fixing allegations covering rubber chemicals and EPDM rubber.
The lion's share of the funds, $250

million, is to cover suits related to rubber chemicals, according to

documents pertaining to the settlements. Of that sum, roughly $202

million is budgeted for payouts to qualifying plaintiffs, with the rest

earmarked for attorneys' fees and administrative costs.

The

proposed settlement covers transactions made between 1 May, 1995, and

31 Dec., 2001.

Bayer paid $66 million in fines in the US

in 2005 pertaining to the rubber chemicals case and earlier this year

was fined $70 million by the European Commission for the same

transgressions.

Bayer's

settlement includes a provision stating it will "cooperate in the

prosecution of claims" against the remaining defendants in the class

actions.

Regarding

EPDM, Bayer set aside $32 million to settle claims pertaining to

alleged price-fixing between 1 Jan., 1997, and 31 Dec., 2001. Of the

$32 million, $26 million has been set aside to for settling claims and

the rest for legal fees and administrative costs.

Previously

DuPont Dow Elastomers LLC and Polimeri Europa SpA/Syndial SpA

agreed to set aside $25.4 million and $3.17 million, respectively,

toward settling class action suits pertaining to EPDM price fixing.

Plaintiffs not wishing to participate in the class-action settlement

have until the end of November to opt out, documents for the defendants state.

The

US Justice Department opened an investigation of EPDM price fixing in

late 2002 but has never filed formal charges against any producer.