Chemtura rescinds anti-trust settlements in chemicals, EPDM

Middlebury, Connecticut--Chemtura Corp. -- the new name for Crompton Corp. -- has rescinded parts of a global settlement agreement covering rubber chemicals and EPDM that were intended to resolve consolidated direct purchaser class action lawsuits.

Last January, the Company said it reserved the right to rescind all or part of the global settlement agreement based on the number of members of the applicable classes who exercised their opt-out rights. The company now says that enough potential claimants have opted out of the class action that it intends to negotiate claims directly with the biggest claimants.

In a statement, the company said, "As a result of opt-outs in rubber chemicals and EPDM, the Company is currently negotiating settlements directly with the largest claimants in those actions. Chemtura does not intend to adjust the reserves previously established with respect to these lawsuits at this time."

Under the Global Settlement Agreement, Chemtura agreed to pay a total of $97 million, consisting of $62 million with respect to rubber chemicals, $30 million with respect to EPDM and $5 million with respect to nitrile rubber. The nitrile rubber portion of the Global Settlement Agreement has been approved by the United States District Court for the Western District of Pennsylvania.

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Forbes (US) story (from AP)

Press release from Chemtura