Mohawk to Settle Class-Action Suit Regarding Foam Business
St. Louis, MO, March 30, 2015--Mohawk has filed an 8K announcing an amended credit agreement and a $125 million charge to settle a class action suit, Stifel Nicolaus reports.
The company also announced that, despite doing nothing wrong, it is settling a price fixing allegation in its foam business for $125 million.
The settlement is insurance against a settlement in court, which could result in the company paying several billion dollars in damages if it lost.
This settlement should resolve all the direct, indirect, and other claims involved with polyurethane foam.
Cash payments are likely to be made in 2015 to settle this suit.