Dow Chemical Co. has seen its fine for participation in a polyols price fixing ring fall by $139 million to $1.1 billion, following a judge's decision on July 26.
Midland, Mich.-based Dow, which has been contesting the level of the fine imposed by a Kansas City, Kan., jury in February, gained a reduction in the level of fine. U.S. District Court Judge John Lungstrum took account for payments made by other companies to avoid going to trail in the decision. The new fine is $1,060,847,117.
The court said that apart from people and companies that have excluded themselves, the settlement applies to all people and companies that purchased polyether polyol products from a defendant at any time from 1999 through Dec. 31, 2003, in the United States and its territories.
Polyether polyols products are: propylene-oxide derived polyether polyols; monomeric or polymeric diphenlmethane diisocyanates (MMDI or PMDI - collectively MDI); toluene diisocyanates (TDI); MDI-TDI blends; or propylene oxide polyether polyolsystems (except those that contain polyester polyols).
Additionally, the judge ordered that a plan of allocation, decided on July 26, would be activated unless Dow appealed. The plan will give claimants a slice of the fine depending on how much the court-appointed claims administrator decides they were overcharged.