Trex wins court approval to settle class action lawsuit

By Michael Lauzon
Correspondent

Published: August 22, 2013 3:30 pm ET
Updated: August 22, 2013 3:32 pm ET

Related to this story

Topics Construction, Sustainability, Pipe/Profile/Tubing, Extrusion, Legal, Deck & railing

Plastic lumber major Trex Co. Inc. has preliminary court approval to settle a class action lawsuit alleging products had mold and color problems.

Trex of Winchester, Va., announced the court decision Aug. 22. The U.S. District Court in San Francisco granted preliminary approval on Aug. 19.

Trex estimates the cost of the settlement at $8.25 million plus $1.475 million in attorneys’ fees for the plaintiffs’ counsel, pending final court approval. Relief will be available to consumers who experienced a certain level of mold growth, color fading or color variation in first-generation Trex products bought between Aug. 1, 2004 and Aug. 19, 2013. Trex plans to post the claim resolution process on its website.

The class action was the second faced by Trex. Several years ago it settled a previous class action for first-generation Trex and Timbrex decking and railing alleged to rot, splinter and degrade. That settlement was for products sold up to July 31, 2004. The suit was approved for class action by the Superior Court of New Jersey in Newark, N.J. Under terms of the settlement, Trex was obligated to replace class members’ products and to refrain from advertising that its products did not require sealant and were maintenance-free.

Trex competitor Advanced Environmental Recycling Technologies Inc. also settled a class action suit several years ago. The suit, filed in Seattle, was for its ChoiceDek product line. AERT agreed to replace deck boards and to pay $1.75 million in legal fees. AERT also made available an instructional video tape about cleaning its products.

Trex officials said in an email correspondence that they expect final court approval for its latest settlement early in 2014. The company stated in a news release that it believes it would have successfully defended itself in a trial.

“Our decision to settle the case is by no means an admission of any of the allegations made by the plaintiffs,” said Trex Chairman, President and CEO Ronald Kaplan. “This settlement allows our company to avoid additional expensive, time-consuming litigation and to focus on delivering quality products and service to consumers, while providing certain relief to those customers affected by these issues.”

Kaplan claimed that mold growth results from environmental conditions and can affect all outdoor surfaces, including deck components made by other companies. Color changes naturally occur over time and color variation can be expected between newly made boards, he added. Trex stresses its marketing information informs customers of these issues.

Trex has developed higher performance wood/plastic composite decking to address consumer concerns, Kaplan explained. In 2010 it debuted Trex Transcend, which has a proprietary shell that resists fading, stains, scratching and mold. More recently it expanded choice of such protected decking with its Enhance and Select product lines. By the end of 2013 Trex’s plants in Winchester and in Fernley, Nev., will make only the new types of decking.

Trex said in an email that the new, protected decking is a wood/polyethylene composite with proprietary additives. It claims recycled content accounts for 95 percent of its decking.


Comments

Trex wins court approval to settle class action lawsuit

By Michael Lauzon
Correspondent

Published: August 22, 2013 3:30 pm ET
Updated: August 22, 2013 3:32 pm ET

Post Your Comments


Back to story


More stories

Image

Corbion Purac collaboration taking bioplastics into even more uses

October 17, 2014 6:00 am ET

Corbion Purac NV's collaboration with Taiwan-headquartered compounder Supla Co. Ltd. and Taiwan electronics producer Kuender & Co. is paying...    More

Image

Metabolix closing Germany operations

October 16, 2014 2:28 pm ET

Bioplastics maker Metabolix Inc. will end business operations in Germany at the end of 2014, according to documents the company filed with the U.S....    More

Image

New Amcor, Method project taking sustainability to a platinum level

October 16, 2014 11:28 am ET

Amcor Rigid Plastics will have a bottle production operation within a factory which is aiming to be the world's first LEED platinum certified...    More

Image

Bavarian Polymers adds 3 extrusion lines in Tennessee

October 16, 2014 1:16 pm ET

Bavarian Polymers Inc. CEO Robert Weishaeupl credits the company's new vinyl windows systems and its strategic location near Nashville, Tenn., as a...    More

Image

Ameriform plans $7.5 million expansion

October 16, 2014 12:57 pm ET

Ameriform Inc. has earmarked $7.5 million to expand its thermoforming, extrusion and rotational molding operations in Muskegon, Mich.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events