CORRECT: Steel Companies Hit with $52 Million in Damages from Texas Lawsuit

("Steel Companies Hit with $52 Million in Damages from Texas Lawsuit," at 9:25 a.m. EDT, incorrectly included SSAB Enterprises LLC among the defendants facing damages in the jury's verdict in the last paragraph. SSAB settled with the plaintiff last month. The correct version follows.)

 
   By Ben Fox Rubin 
 

A handful of metals-services and steel companies were hit with $52 million in damages in a federal antitrust suit in Texas, with the jury siding with the plaintiff.

MM Steel LP filed a suit in 2012 against Reliance Steel & Aluminum Co. (RS), its unit Chapel Steel Corp., Nucor Corp. (NUE), American Alloy Steel Inc., JSW Steel Inc., and SSAB Enterprises LLC. Two former Reliance employees left the company to start MM Steel, a metals service center and claimed that Reliance and the other co-defendants engaged in anticompetitive activities. MM Steel is owned by Mike Hume and Matt Schultz, who started the business in 2011.

SSAB last month resolved all claims with MM Steel and was dismissed from the case. The jury returned a verdict Tuesday against the remaining defendants jointly for $52 million in damages. Reliance and Chapel issued a statement Wednesday that they disagree with the verdict and intend to "pursue all available remedies," including an appeal. They said the ultimate amount Reliance may be required to pay isn't yet known.

Write to Ben Fox Rubin at [e-mail]

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