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Jeld-Wen: appeal court upholds antitrust violation

08.03.2021 − 

Jeld-Wen has been unable to prevent the forced sale of its doorskin plant in Towanda (Pennsylvania), which had been ordered on the basis of antitrust law, via the first appeal proceedings. In its opinion published on 18 February, the United Court of Appeals for the Fourth Circuit upheld the Richmond district court’s ruling on this point. On 14 December 2018, the district court had ruled in the first instance that Jeld-Wen must sell its Towanda production site.

In contrast, another decision passed by the district court in this connection - according to which Jeld-Wen was to pay some US$139m to US door manufacturer Steves & Sons Inc. (Steves) for past and future damages - was reversed on the basis speculative assumptions. This compensation payment had been set as a substitute measure in the event that the forced sale was overturned in the course of the appeal proceedings.

Jeld-Wen has announced that it will take the matter to the next level of appeal. The proceedings, ongoing since June 2016, focus on issues such as whether Jeld-Wen’s October 2012 takeover of Craftmaster Manufacturing (CMI) reated a dominant market position. According to Steves, Jeld-Wen used the takeover to artificially reduce supply and drive up prices. In addition, Jeld-Wen is accused of failing to honour the supply agreement concluded between Steves and CMI in the run-up to the CMI takeover.

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