Steel Dynamics Inc., a steel producer headquartered in Fort Wayne, Indiana, has entered into an agreement to settle the direct purchaser class action litigation, Standard Iron Works v. Arcelor Mittal, et al, for $4.6 million. The lawsuit was brought in Chicago federal court in 2008 by a class of direct steel purchasers, alleging that the company, among other steel producers, had participated in a conspiracy with other steel manufacturers to restrict steel production.

A motion for summary judgment, earlier filed by SDI, was pending at the time of settlement.

The settlement requires preliminary and final approval by the court, which the company anticipates it will receive. Following preliminary approval by the court, members of the class will be given an opportunity to opt out of the settlement. Following court approval and payment, SDI will receive a full release of all claims that were or could have been brought by all participating class members. An existing, separate claim by “indirect” purchasers is not affected by this settlement, although SDI and the other defendants have filed a Motion to Dismiss.

In a release announcing the settlement, Mark Millett, president and CEO of SDI, says, “While we had great confidence that we would prevail on the facts and the law, we felt it was prudent at this time to exit this costly, protracted and distracting litigation. We maintained at all times that the lawsuit was without merit and that we did not conspire to limit steel production. To the contrary, the facts amply demonstrated that we both increased existing production and expanded our production capabilities during the relevant time period, and we believe plaintiffs ultimately recognized these facts.”