Masco settles Behr class action suit
By Furniture Today Staff -- Furniture Today, January 6, 2003
Taylor, Mich. — Masco Corp. said it has reached an agreement that should lead to acceptance of its proposed settlement to a class action lawsuit involving its Behr Process Corp. unit.
Masco, which owns furniture manufacturers Mill's Pride, d-Scan and Tvilum-Scanbirk, previously said the settlement would cost up to $200 million before taxes. That amount excludes any recovery from insurers or other third parties, which Masco expects will be significant.
Under the new agreement, plaintiffs and their attorneys would drop objections to the proposed settlement. The case involves claims that mildew grew on wood surfaces that were supposed to be protected with Behr product.
Separately, Masco's board also authorized the repurchase of up to 50 million common shares, about 10% of its outstanding stock. Previously, the company had bought back about 22 million of the 40 million shares that had been authorized for purchase.
