Taylor, Mich.-based Masco Corporation, whose portfolio includes residential insulation installation, announced July 26 that it will pay $75 million to settle a class-action lawsuit filed in 2006 alleging that it collaborated with five insulation manufacturers on a price-fixing agreement that kept the company’s rates on fiberglass insulation lower than those given to independent contractors from 1999 to 2003. Court documents from a 2009 ruling suggest that Masco’s rate could have been as much as 10% to 12% lower.
The announcement comes after reports that Masco’s trial, scheduled to begin July 23, was canceled by a federal judge in Atlanta as the parties had begun talks with a mediator. The lawsuit comprised 377 independent fiberglass insulation contractors who Bloomberg reports were seeking $150 million in damages. CertainTeed, Guardian, Johns Manville, and Knauf settled out of court. Owens Corning was also alleged as being part of the price-fixing but was in bankruptcy when the lawsuit was filed in 2006.
Masco says the payment will impact its second-quarter earnings to be announced after the market closes July 30.