JELD-WEN Holding, Inc., one of the world’s largest window and door manufacturers, entered into two separate multimillion-dollar settlement agreements as part of a consolidated antitrust action brought against it in a Virginia federal court, according to an 8-K filing filed with the Securities and Exchange Commission on Friday after the stock market close.
For background, in October 2018, Grubb Lumber Company filed a class-action lawsuit in the Eastern District of Virginia on behalf of itself and others against JELD-WEN and Tampa-based Masonite Corporation, another manufacturer of doors. More complaints from direct and indirect purchasers followed, so the suits were consolidated into two separate actions — a direct purchaser action and an indirect purchaser action.
The suits alleged JELD-WEN and Masonite violated the Sherman Antitrust Act. In the indirect purchaser action, the companies were accused of violating state antitrust and consumer protection laws by allegedly conspiring to price-fix interior molded doors.
JELD-WEN’s motion to dismiss the suits last year was denied.
On Aug. 31, as part of the direct purchaser action, JELD-WEN and co-defendant Masonite entered into a settlement agreement with Grubb Lumber Company and Philadelphia Reserve Supply Compony on behalf of themselves and the direct purchasers. JELD-WEN and Masonite agreed to pay $28 million each to the named plaintiffs in exchange for a full release of the claims, according to the filing.
On Sept. 4, in a separate agreement related to the indirect purchaser action, the companies agreed to pay $9.75 million each to the named plaintiffs in exchange for a full release of claims.
In the filing, JELD-WEN said that it “continues to believe that the claims lack merit and has denied any liability or wrongdoing for the claims” made against it.
The settlement agreements are subject to court approval, the filing notes.
The North Carolina Business News Wire reached out to the companies for comment.
Shares of JELD-WEN (JELD) fell 24 cents to close at $20.47 on Friday. Shares of Masonite (DOOR) rose $1.06 to close at $91.94.
