3M Antitrust

Washington, DC: (May-21-07) Over a decade of antitrust lawsuits against office supply giant 3M ended with a federal judge granting final approval to a class action settlement worth nearly $40 million and awarded more than $14.5 million in fees and expenses to the plaintiffs lawyers. The suit against 3M, brought by direct purchasers and retailers claimed that 3M, the maker of Scotch tape and Post-It Notes, abused its monopoly power in the market for transparent tape by driving LePage Inc., a competitor, out of business. The Bradburn Parent/Teacher Store Inc. v. 3M, a class action brought by direct purchasers and retailers, came on the heels of a trio of settlements reached last year. LePage's had accused 3M of using illegal tactics to drive it out of business. The suit claimed that 3M offered bundled rebates to large retailers for reaching sales goals in several categories of 3M products. In reality, the suit said, the rebates could be earned only by removing LePage's products from their shelves. At trial, LePage's had argued that it landed significant contracts to provide retailers such as Staples and Kmart with private label or store-brand tape, but lost those accounts when 3M offered the bundled rebates since they could be earned only if the retailers purchased targeted amounts of several 3M products. A jury agreed and in an October 1999 verdict awarded LePage's $22,828,899 in damages. [LAW.COM: 3M ANTITRUST]

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Published on May-22-07