Foam Producers Accused of Antitrust Activities

Statesville, NC, Sept. 17, 2010--Several North American foam producers have engaged in antitrust activities, including price fixing, according to published reports of lawsuits filed by foam buyers.

The suits were filed in U.S. District Court in North Carolina, Ohio and California. The North Carolina suits name Hickory Springs, Valle Foam Inds., Domfoam International, Carpenter Co., the Woodbridge Group, Flexible Foam Products, Scottdel, Foamex Innovations, Future Foam, Vitafoam Products Canada and Vitafoam as defendants.

The lawsuit charges that the defendants engaged in a conspiracy from 1999 to the present to charge inflated prices for polyurethane foam.

"Every price increase known during the class period was the result of conspiratorial discussions among defendants to fix prices," the suit says.

"Defendants also agreed to allocate customers in specific communications between each other."

The complaints seek class-action status on behalf of all purchasers who bought polyurethane foam from the companies from January 1, 1999 to the present.

The suit says that Vitafoam approached the U.S. Department of Justice's Antitrust Division in February to self-report evidence of illegal antitrust activities, amongst itself and other companies and individuals in the industry ... and to seek acceptance into the Antitrust Division's Corporate Leniency Program.