If you purchased Wallboard manufactured by one or more of the Defendants or their subsidiaries for end use and not for resale between January 1, 2012 and June 16, 2016, you may be a member of the Indirect Purchaser Settlement Class certified by the Court, and your rights may be affected by the settlement with Lafarge.
There is a class action lawsuit known as In re: Domestic Drywall Antitrust Litigation, MDL No. 2437 and 13-MD-2437, pending in the United States District Court for the Eastern District of Pennsylvania on behalf of indirect purchasers of Wallboard from January 1, 2012 through the present. “Wallboard” refers to paper-backed gypsum wallboard and is also known as drywall or plasterboard. The lawsuit alleges that CertainTeed Gypsum, Inc., USG Corporation, United States Gypsum Company, New NGC, Inc., Lafarge North America Inc., Eagle Materials, Inc., American Gypsum Company LLC, PABCO Building Products, LLC, and TIN, Inc. (collectively, the “Defendants”) participated in a conspiracy to raise, fix, maintain or stabilize prices of Wallboard in violation of federal antitrust laws. The lawsuit seeks damages for alleged overcharges for Wallboard, and injunctive relief, from the Defendants. The Defendants deny that they violated the antitrust laws and have asserted defenses to the claims in this lawsuit.
Plaintiffs have entered into a settlement agreement to resolve claims against Lafarge North America Inc. (“Lafarge”), in exchange for $5.2 million and certain cooperation in prosecuting the lawsuit against the remaining Defendants, as set forth in the Settlement Agreement. In exchange for Lafarge’s agreement to pay $5.2 million and provide certain cooperation, Plaintiffs have agreed to the release and dismissal of Lafarge from the lawsuit. Previously, Plaintiffs settled with TIN, Inc. (“TIN”) for $1.75 million and cooperation, and with USG Corporation, United States Gypsum Company, and USG Corporation’s subsidiary L&W Supply Corporation (collectively, “USG”) for $8.75 million and cooperation. The District Court granted final approval of the TIN and USG settlements on August 20, 2015, and TIN and USG have been dismissed from the lawsuit. In a recent decision, the District Court allowed Plaintiffs’ claims regarding the alleged conspiracy to go forward against four of the five remaining Defendants, but granted CertainTeed Gypsum, Inc.’s motion for summary judgment. Plaintiffs continue to pursue the case against the remaining Defendants who have not settled (New NGC, Inc., Eagle Materials, Inc., American Gypsum Company LLC, and PABCO Building Products, LLC).
The Court has preliminarily certified the Lafarge Settlement Class for the purpose of settling the case against Lafarge. This settlement class is defined more precisely in the Lafarge Notice, which is intended to help you determine if you are a member of the Lafarge Settlement Class, and your choices and rights related to that class.
Lafarge, while denying the allegations in the lawsuit and asserting defenses to the claims, has agreed to settle the lawsuit on a class basis with indirect purchasers of Wallboard from January 1, 2012 through June 16, 2016 for a cash payment of $5.2 million and certain cooperation as set forth in the Settlement Agreement in connection with Plaintiffs’ prosecution of the lawsuit.
If the Court approves the Lafarge settlement and dismisses Lafarge from the case, the lawsuit will continue against the non-settling Defendants New NGC, Inc., Eagle Materials, Inc., American Gypsum Company LLC, and PABCO Building Products, LLC. If the Lafarge settlement is not approved, the case may continue against Lafarge. As noted above, the Court previously granted final approval to Plaintiffs’ settlements with TIN and USG in August 2015 and dismissed TIN and USG from the case.
Your legal rights may be affected by the proposed Lafarge settlement whether or not you act, so please read the entire Lafarge Notice carefully. If you desire, you may contact Settlement Class Counsel listed in the Lafarge Notice, or other legal counsel of your choosing, to discuss the Lafarge Notice.
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