("Steel Companies Hit with $52 Million in Damages from Texas
Lawsuit," at 9:25 a.m. EDT, incorrectly included SSAB Enterprises
LLC among the defendants facing damages in the jury's verdict in
the last paragraph. SSAB settled with the plaintiff last month. The
correct version follows.)
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.
SSAB last month resolved all claims with MM Steel and was
dismissed from the case. The jury returned a verdict Tuesday
against the remaining 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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