Atkore International, a US manufacturer of electrical products, has agreed to pay $50 million (£39.2 million) to settle the final antitrust class action lawsuit brought against it. The suit, filed in 2020, accused the company of conspiring with competitors to fix prices and allocate customers in the market for electrical conduit and related fittings. The settlement, which still requires court approval, effectively ends all remaining civil litigation over the alleged cartel behaviour.
The case centred on claims that Atkore and other unnamed co-conspirators coordinated pricing strategies and divided up the market, thereby inflating costs for contractors, distributors and ultimately end consumers. The plaintiffs, representing a class of direct purchasers, argued that the scheme violated US antitrust laws. Atkore has not admitted any wrongdoing as part of the settlement, stating that it agreed to resolve the matter to avoid the cost and distraction of continued litigation.
For UK investors, the settlement is a reminder of the regulatory and legal risks facing multinational industrials. Atkore, which trades on the New York Stock Exchange, saw its shares rise 0.3 per cent in after-hours trading following the announcement, suggesting the market viewed the payout as manageable. The company reported net income of $328 million in its most recent fiscal year, meaning the settlement represents roughly 12 per cent of annual profit.
The broader context is one of heightened antitrust enforcement globally. In the UK, the Competition and Markets Authority has ramped up investigations into price-fixing across sectors from construction to pharmaceuticals. While the Atkore case is US-specific, it underscores the potential financial exposure companies face when antitrust claims are brought collectively. Analysts at investment banks have noted that such settlements, while costly, often remove overhangs that weigh on share prices.
Pension funds holding Atkore shares through US equity trackers may see a modest positive impact from the removal of legal uncertainty. However, the settlement does not preclude further regulatory action by US authorities, which could impose additional fines. For now, the company has said it will fund the settlement from existing cash reserves, and no material impact on operations is expected.
Source: Reuters, Atkore press release