By Ben Fox Rubin
A handful of metals-services and steel companies were hit with
$52 million in damages in a federal antitrust suit in Texas, with
the jury siding with the plaintiff.
MM Steel LP filed a suit in 2012 against Reliance Steel &
Aluminum Co. (RS), its unit Chapel Steel Corp., Nucor Corp. (NUE),
American Alloy Steel Inc., JSW Steel Inc., and SSAB Enterprises
LLC. Two former Reliance employees left the company to start MM
Steel, a metals service center and claimed that Reliance and the
other co-defendants engaged in anticompetitive activities. MM Steel
is owned by Mike Hume and Matt Schultz, who started the business in
2011.
The jury returned a verdict Tuesday against all six defendants
jointly for $52 million in damages. Reliance and Chapel issued a
statement Wednesday that they disagree with the verdict and intend
to "pursue all available remedies," including an appeal. They said
the ultimate amount Reliance may be required to pay isn't yet
known.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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