Legal Library: Cases and Proceedings

The complaint alleged that RHI violated various provisions of an FTC order issued in 2001. According to the complaint, the 2001 order was issued pursuant to a 1999 consent agreement with RHI that followed the FTC’s investigation of RHI’s acquisition of Global Industrial Technologies, Inc., and resolved concerns that the acquisition would decrease competition in North American markets for refractory bricks used to line steel-making equipment. The order, as drafted in 1999, required RHI to divest to Resco Products, Inc. two refractories plants and other assets in Canada and the United States in a manner set out in contracts between Resco and NARCO, an RHI subsidiary. However, before the order became final, the FTC determined, in 2000, that NARCO failed to divest all of the requisite assets to Resco. The complaint also charged that NARCO manufactured refractory bricks in violation of a patent license that was part of the order, and in violation of specific order language. Finally, the complaint asserted that NARCO modified the settlement agreement with Resco without FTC approval. Under the terms of the final judgment, RHI agreed to pay a civil penalty of at least $650,000 for the violations and to conduct asbestos remediation at a divested plant.