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$103M released to class members in steel price fixing suit

The federal district court in Chicago has released over $103 million in settlement funds to class members in a suit alleging that United States Steel Corp. conspired with other steel manufacturers to fix prices for steel. In granting the plaintiffs’ motion for distribution, the court determined that the claims process was thorough, straightforward, and fair, and that every class member’s claim was evaluated pursuant to the same process and under the same standards (Standard Iron Works v. Arcelormittal, October 20, 2015, Zagel, J.).

Standard Iron Works, Wilmington Steel Processing Co., Inc., Capow, Inc., Alco Industries, Inc., and Gulf Stream Builders Supply, Inc. filed a class action in 2008 against United States Steel, ArcelorMittal USA, Inc., Commercial Metals Co., AK Steel Holding Corp., and Gerdau Ameristeel Corp., alleging that the steel manufacturers engaged in a conspiracy to fix prices. After a number of settlements were reached between the parties, Class Counsel secured a total common fund recovery of $163.9 million for the benefit of the settlement class. The court previously granted class counsel attorney fees and expenses of over $54 million and gave final approval of the settlements. The class has now moved for distribution of the settlement fund, consisting of over $103 million.

The court first rejected four objections to distribution. Specifically, it noted that the first two objectors, IPSCO Tubular, Inc. and Newport Steel, are not members of the class because affiliates of co-conspirators are excluded from the class definition. Two other objectors, General Motors and Electrolux, argued that their data supports greater purchase amounts than those contained in the defendants’ records. The court dismissed this argument, however, finding that GM and Electrolux had many opportunities to substantiate their claims, but neither company did so.

In granting distribution, the court concluded that “the procedures used, actions taken, and determinations made by [the Claims Administrator] and Plaintiffs’ Class Counsel for the administration of the CMC, Gerdau, AK Steel, ArcelorMittal, and U.S. Steel Settlements were proper and complete.”

The case is No. 09 C 5214.

Attorneys: Allen D. Black (Fine, Kaplan & Black) and Mark C. Hansen (Kellogg, Huber, Hansen, Todd & Evans, P.L.L.C.) for Standard Iron Works. Eric B. Fastiff (Lieff Cabraser Heimann & Bernstein) for Wilmington Steel Processing Co, Inc. Dianne M. Nast (NastLaw LLC) for Rem Systems, Inc. Anthony J. Bolognese (Bolognese & Associates) for Alco Industries, Inc. Joseph Goldberg (Freedman Boyd Hollander) for Gulf Stream Builders Supply, Inc. Andrew Stanley Marovitz (Mayer Brown LLP) for Arcelormittal and Arcelormittal USA, Inc. Jonathan Stuart Quinn (Neal, Gerber & Eisenberg) for United States Steel Corp. David Gersch (Arnold & Porter LLP) for Nucor Corp. Joel Gerald Chefitz (McDermott Will & Emery LLP) for Steel Dynamics, Inc. John W. Treece (Sidley Austin LLP) for SSAB Swedish Steel Corp. and Arcelormittal S.A.

Companies: Standard Iron Works; Wilmington Steel Processing Co, Inc.; Rem Systems, Inc.; Alco Industries, Inc.; Gulf Stream Builders Supply, Inc.; Arcelormittal; Arcelormittal USA, Inc.; United States Steel Corp.; Nucor Corp.; Steel Dynamics, Inc.; SSAB Swedish Steel Corp.; Arcelormittal S.A.