Dow settles UK lawsuit with tyre producers
A UK lawsuit in which Dow was being sued by tyre producers (Bridgestone, Continental, Cooper, Michelin and Pirelli) has settled. The tyre producers first made their claim in 2008, after a 2006 European Commission Decision found several synthetic rubber producers, including Dow, to have participated in a cartel. The litigation, which took place before the London High Court, was a very rare example of a cartel damages lawsuit going to trial, and was the first of its kind in the United Kingdom.
Dr Cristina Caffarra, Head of CRA's European Competition Practice, acted as Dow's expert witness and provided economic advice to Dow from the start of the damages claim in 2008. Dr Cristina Caffarra filed several expert reports to the Court which included, amongst other things, an empirical model that estimated the level of overcharge faced by the Claimants and an analysis of the extent to which tyre producers were able to pass on changes in their manufacturing costs (including the cost of synthetic rubber) to their consumers.
The lawsuit has been settled to the satisfaction of all parties. The terms of the settlement are confidential.
The CRA team was led by Dr Cristina Caffarra and included Dr Bob Stillman, Dr Hugh Wills, Dr Jenny Haydock, Dr Riemer Faber, Rebecca Fordham and Konstantin Ebinger.