UPDATE: ArvinMeritor: Jury Finds Eaton Violated Antitrust Law

(adds Eaton comment, updates stock quote)

 
   DOW JONES NEWSWIRES 
 

Auto-parts supplier ArvinMeritor Inc. (ARM) said a U.S. federal court jury ruled Thursday in favor of its venture with ZF Friedrichshafen AG in an antitrust lawsuit against Eaton Corp. (ETN).

The Delaware jury found the industrial manufacturer engaged in anticompetitive conduct in the sale and marketing of heavy-duty truck transmissions. A separate trial will be held to determine any damages.

Eaton earlier said it had competed in a "fair and vigorous manner in heavy-duty truck transmissions."

An Eaton spokeswoman said the company is disappointed with the jury's ruling and intends to appeal.

ArvinMeritor Chairman and Chief Executive Chip McClure said Eaton's "wrongful conduct" forced it to exit the Nafta line-haul transmission business and led to the demise of its venture with ZF Industries.

"Due to the exclusionary tactics employed by our competitor, we believe our products became difficult and ultimately impossible for our customers to choose as alternatives to Eaton's offerings," he added.

In 2005, Eaton won a ruling from the International Trade Commission that prohibited imports of transmissions for medium- and heavy-duty trucks made by Germany-based ZF Friedrichshafen, ArvinMeritor and their joint venture, ZF Meritor LLC, into the U.S. because of a patent infringement.

ArvinMeritor's shares jumped 13% to $8.71 in recent trading, while Eaton's were up 1.7% to $56.81 amid a broad market rally.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]

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