Reliance Steel & Aluminum Says Texas Antitrust Case Verdict Not In Favour

(RTTNews) - Metal processor Reliance Steel & Aluminum Co. (RS) said that a Houston, Texas jury returned a verdict yesterday against the company and its unit, Chapel Steel Corp., together with four other co-defendants in an antitrust suit filed in the United States District Court for the Southern District of Texas.

Reliance has been involved in legal proceedings brought by two former employees who left the firm to start their own business and claim that Reliance and the co-defendants engaged in anticompetitive activities. The jury returned a verdict against all six defendants jointly of $52 million in damages, which amount is likely to be trebled under the federal antitrust laws. Both Reliance and Chapel disagree with the verdict and plan to pursue all available remedies, including taking the matter up on appeal. The ultimate amount of any final judgment that Reliance may be required to bear is unknown at this time.

Headquartered in Los Angeles, California, Reliance Steel & Aluminum is the largest metals service center company in North America.