Class actions related to copper plumbing tubes filed against Outokumpu
Outokumpu Copper (USA), Inc. has been served with a complaint in a case filed in federal district court in Memphis, Tennessee, the US by plaintiff American Copper & Brass, Inc. The complaint alleges claims and damages under the US antitrust laws and purports to be a class action on behalf of all direct purchasers of copper plumbing tubes in the United States from 1988 to March 31, 2001. Outokumpu understands that same complaint is in the process of being served to Outokumpu Oyj and Outokumpu Copper Products Oy.
Outokumpu believes that the allegations in this case are groundless. The complaint alleges higher tube prices due to a price fixing cartel in the United States among a number of copper tube suppliers. The plaintiff and its law firms appear to have initiated this case entirely based on the findings and the fines imposed by the European Commission on Outokumpu and a number of other companies on September 3, 2004 for a copper sanitary tube cartel in the European Union. There are no factual allegations whatsoever in the plaintiff's complaint that would support a claim that Outokumpu was a party to any price fixing or other anticompetitive agreement affecting the US plumbing tube market or that would even remotely connect the European cartel activity to the United States.
Outokumpu wants to emphasize that the extensive investigation by the European Commission concluded that a cartel was only in place in the European Union, and no evidence was found that it had affected the US plumbing tube market. Furthermore, Outokumpu has exported only small amounts of copper plumbing tube to the US during the relevant period.
Outokumpu has been made aware that additional class action complaints have been filed in the US under laws of various states on behalf of so called indirect purchasers. However, these cases have not been served on Outokumpu Oyj or on any of its subsidiaries to date.
For the foregoing reasons, Outokumpu does not believe that these cases will result in liability to the company and will defend itself in any such proceeding.
In connection with the recently announced transaction to sell its fabricated copper products business to Nordic Capital, Outokumpu has agreed to indemnify and hold harmless Nordic Capital with respect to these class actions.
Further information:
Kalle Luoto, Senior Vice President - Corporate General Counsel, tel. +358 9 421 2433, kalle.luoto@outokumpu.com
Eero Mustala, Senior Vice President - Corporate Communications, tel. +358 9 421 2435, eero.mustala@outokumpu.com