Norbord is paying $30 million to settle an antitrust lawsuit.
Norbord is paying $30 million to settle an antitrust lawsuit.
The company confirmed it has reached a settlement in the OSB antitrust litigation to limit the risks and costs associated with a prolonged trial. Norbord continues to contest the allegations and denies that it had violated U.S. or any other antitrust laws.
The suit alleges that Norbord and eight other OSB producers violated U.S. Antitrust laws through agreements to fix prices and to cut OSB supply from June 1, 2002, to the present, a report by Reuters confirmed.
The decision to settle was both difficult and disappointing, Barrie Shineton, Norbord president and CEO said of the settlement. We are certain that Norbord has not violated the law. However, jury trials are inherently unpredictable and we could not guarantee a positive verdict. Given this risk, the magnitude of the plaintiffs’ claims and the fact that any damages would be tripled under U.S. Antitrust law, going to trial would have been irresponsible because it would have put the entire company at risk.
Norbord will make the settlement payments in two $15 million installments, the first on July 25 and the second on October 24. Additionally, the company will pay $2.2 million into an escrow account for indirect OSB buyers, Reuters confirmed.
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