DuPont Dow Elastomers also settles EPDM action

DuPont Dow Elastomers (DDE) has reached a plea agreement with the US Department of Justice that includes an $84m (E65m) fine that resolves all criminal charges against it under a DoJ investigation of the polychloroprene industry. DDE has also agreed to settle a federal class action anti-trust lawsuit related to purchases of EPDM. Having agreed in April 2004 to fund any DDE anti-trust liabilities up to $150m (E116m) and 75% beyond that figure, DuPont will increase its litigation reserve by $118m (E91m) on a pre-tax basis. The group said that the impact on its fourth quarter 2004 results would be a special charge of approximately $100m (E77m) pre-tax, after reflecting payments to be made by Dow as provided under the 2004 agreements.