Sherwin-Williams, NL Industries, Conagra Unit Settle Paint-Ad Lawsuit -- Update
July 17 2019 - 2:37PM
Dow Jones News
By Josh Beckerman
Sherwin-Williams Co. (SHW), NL Industries Inc. (NL) and Conagra
Brands Inc.'s (CAG) ConAgra Grocery Products unit have settled
litigation with 10 California counties and cities related to the
companies' advertising for lead paint.
San Francisco City Attorney Dennis Herrera said the settlement
totaled $305 million.
The federal government banned the use of lead paint in homes in
1978. The companies had argued that they were being penalized for
truthful advertising of a product that was legal and commonly used
at the time.
Sherwin-Williams said Wednesday the agreement dissolves the
residential lead paint abatement program that the plaintiffs sought
from the court and "represents a significant reduction in their
recovery."
Sherwin-Williams said that while it "continues to believe that
this litigation was unfair, unwarranted and unwise, the resolution
announced today will enable all parties to move forward and is in
the best interests of the Company and its shareholders."
Mr. Herrera said, "We have fought to hold these companies
accountable for nearly twenty years, and will finally have needed
funds to devote to protecting our children from lead poisoning." He
said the settlement provides "flexibility to create more expansive,
efficient, and effective clean-up programs."
In May 2018, NL Industries reached a settlement agreement, and
recorded a related $62 million pretax charge in the 2018 second
quarter. NL said the other defendants filed motions with the trial
court objecting to the terms of the settlement.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 17, 2019 15:22 ET (19:22 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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