Star Pipe Products Ltd. has agreed to pay roughly $3.6 million to direct purchasers of iron pipe fittings to settle a potential class action in New Jersey federal court accusing the company of engaging in a price-fixing conspiracy, according to a Monday filing.
Star Pipe, which was sued in February 2012 along with Sigma Corp. and McWane Inc., is the second defendant to reach a deal with the direct purchasers. Sigma agreed in May to pay the direct purchasers $4.9 million.
Under Monday’s proposal, which needs a judge’s approval, Star Pipe would deposit just over $3.6 million into an escrow account in three equal installments, the first of which would be in September. It has also agreed to cooperate with the plaintiffs as they continue to pursue claims against McWane.
“This settlement is reasonable in light of the risks of moving forward with litigation toward class certification, summary judgment and trial,” the plaintiffs wrote in a motion seeking preliminary approval.
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