The world's second-largest car-paint maker and the largest U.S. paint retailer allegedly inflated the prices for auto refinishing paint.
On behalf of consumers who bought auto refinish paint between January 1, 1993, and December 31, 2000, six auto centers in Pennsylvania, New Jersey, New York and Illinois filed a class action lawsuit against PPG Industries Inc. and Sherwin-Williams Co.
The class action described as "a violation of antitrust laws by conspiring to fix prices in the US," was filed in 2001, in the US District Court of Philadelphia.
On December 28, 2006, the companies won preliminary approval to settle the case for $39 million -- with PPG paying $23 million and Sherwin-Williams shelling out $16 million. U.S. District Court Judge R. Barclay Surrick approved the settlement, ending a five-year litigation process.
At the start of the case, the alleged 'conspiracy' defendants to the case also included DuPont Co., the third-largest U.S. chemical maker, and the German chemical producer BASF AG, which, in 2004, settled the case for $36 million $12 million, respectively. In 2003, Akzo Nobel NV, the Dutch chemicals maker, paid $18.6 million to be dropped from the case.
With the five companies' payouts, total settlement in the case amounts to $105.8 million.