US: Masco Corp. is due to face a class action antitrust lawsuit at a district court in Atlanta on 23 July 2012. The lawsuit will examine whether the leading US insulation installer has abused its market dominance.
Nearly 370 companies that install insulation in homes accuse Masco of having conspired with makers of fibreglass insulation between 1999 and 2003 to ensure that other installers paid much more than Masco for the material. The suit argues that Masco agreed to accept price increases so long as the manufacturers charged other installers even more when prices went higher, preserving Masco's cost advantage.
The insulation installers are now seeking about US$250m in damages. Under antitrust law any damages awarded are automatically tripled. The four makers of insulation - Johns Manville, CertainTeed Corp., Knauf Insulation GmbH and Guardian Fiberglass Inc. - that were also named in the suit against Masco previously agreed to pay a total of US$37.3m to settle claims made by the insulation installers in 2008.
A Masco spokeswoman said that the allegations are 'baseless' and that the company, "intends to continue to defend itself vigorously." In a recent securities filing Masco said it can't 'reliably estimate' the damages that could result from an adverse ruling in the case.
Masco is the biggest installer of insulation made by other companies in new homes in the US. Its market share has been estimated at 40-60%.
