Urethane Class Action Suits Can Move Forward

In Carpenter Co. et al. v. BASF SE et al.; and Woodbridge Foam Corp. et al. v. BASF SE et al., Kansas District Court Judge John W. Lungstrum has allowed chemical companies that opted out of a class certification in a larger class action to proceed with their own two putative class actions accusing BASF SE, the Dow Chemical Co. and Huntsman International LLC of price-fixing in the urethane market. However the court rejected plaintiffs’ claims based on European law, due to on lack of subject matter jurisdiction, and against two BASF executives, due to the running of the statute of limitations. The court did allow plaintiffs to maintain 1) their conspiracy actions, stating that plaintiffs only had to allege enough facts to support a plausible claim of the existence of a conspiracy that does not merely rest on purely conclusional allegations, which plaintiffs did; and 2) their fraudulent concealment allegations, stating that plaintiffs have sufficiently alleged that defendants affirmatively acted to make sure that their meetings and communications were not discovered and their agreements remained concealed.

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