By: Jane Denny
URETHANE TECHNOLOGIES INTERNATIONAL
July 3, 2014
Three polyurethane automotive foam producers have been ordered to share a $6.1 million fine for price-fixing after entering guilty pleas at the U.S. District Court for the Eastern District of New York.
Riverside Seat Co. of Riverside, Mo., Woodbridge Foam Fabricating Inc., part of Mississauga, Ontario-based The Woodbridge Group and SW Foam LLC of El Paso pleaded guilty to a one-count felony charge that they conspired with others to fix prices for polyurethane flexible slab stock automotive foam in the U.S. and elsewhere.
The charge related to the period from June 2008 until the following April. The companies have agreed to pay a total of $6,148,800 in criminal fines and cooperate with the department’s ongoing investigation.
Bill Baer, assistant attorney general of the Department of Justice’s Antitrust Division, said the charges demonstrate the division’s commitment to holding companies accountable for conspiracies that affect components used in products that consumers rely on every day,”
According to the charge, the companies and their co-conspirators discussed polyurethane foam prices and agreed to coordinate the timing and amount of price increases to customers. The companies carried out the agreement and exchanged information for the purpose of monitoring and enforcing adherence to the agreement.