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BUSINESS
Crompton Corp., in its recent quarterly filing with the Securities & Exchange Commission, provides details of the many investigations and lawsuits filed against the company regarding price-fixing. The actions taken by the federal government, states, and individuals involve allegations of price-fixing for ethylene propylene diene rubber (EPDM), plastics additives including heat stabilizers, and rubber chemicals. The company says it is the subject of coordinated criminal investigations conducted by the U.S. Justice Department and the Canadian Competition Board. Also, there is a coordinated civil investigation by the same two bodies and the European Commission. Crompton has held preliminary talks with Justice regarding a plea to antitrust law violations with respect to rubber chemicals. As for heat stabilizers and EPDM, the firm says it has received some assurances of conditional amnesty from prosecutions and fines. There are also state class-action suits regarding rubber chemicals in 17 states and the District of Columbia, EPDM in California, and plastics additives in Ohio. Civil suits relating to the products have been filed in California, New Jersey, Connecticut, New York, and Pennsylvania. Crompton says that, prior to the end of 2002, it incurred antitrust investigation costs of $6.3 million, pretax. In the first quarter of this year, pretax investigation costs totaled $8.5 million. The company says it continues its own internal investigation, including a review of any improper or criminal conduct. In connection with the investigations, a senior Crompton officer has been placed on administrative leave. |
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