Claimants v Chemtura Corporation
Chemtura Rejects Portions of Prior Settlement
Chemtura Corporation announced October 18, 2005 that it has repealed certain parts of a Global Settlement Agreement in a class action lawsuit pending in the United States District Courts in the Northern District of California and the District of Connecticut. As announced last January, the Company reserved the right to cancel all or part of the Global Settlement Agreement based on the number of members of the applicable classes who exercised their opt out rights. As a result of opt outs in rubber chemicals and EPDM, the Company is currently negotiating settlements directly with the largest claimants in those actions. Chemtura does not intend to adjust the reserves previously established with respect to these lawsuits at this time.
Under the Global Settlement Agreement, Chemtura agreed to pay a total of $97 million, consisting of $62 million with respect to rubber chemicals, $30 million with respect to EPDM and $5 million with respect to nitrile rubber. The nitrile rubber portion of the Global Settlement Agreement has been approved by the United States District Court for the Western District of Pennsylvania.
Chemtura cannot predict the outcome of the lawsuit. It will continue to seek cost-effective resolutions of these claims and others pending or hereafter asserted against Chemtura or any of its subsidiaries; however, the resolution of such claims could have a material adverse effect on the Company's financial condition, results of operations and prospects.
