Four-Year Legal Dispute Between PPG Industries and Platinum Equity Ends
December 20, 2011
A 4-year legal battle between PPG Industries and Beverly Hills,
Calif.-based Platinum Equity has ended, according to court records.
The legal dispute began shortly after Platinum Equity terminated
its agreement to purchase PPG's auto glass business (now
Pittsburgh Glass Works) in December 2007nearly four years
ago to the day it was dismissed.
Both cases were dismissed with prejudice, according to court documents.
The case ended with a stipulation of discontinuance filed by both parties last week, dismissing the case with prejudice and without costs and fees for either party.
Terms of the agreement have not been disclosed.
Platinum Equity originally filed suit against PPG in January 2008, alleging fraud and negligent misrepresentation in the agreed-upon purchase. The private equity firm specifically alleged that PPG "misrepresent[ed] and conceal[ed] the true facts regarding the financial condition and performance of the company they owned and operated to fraudulently induce [Platinum] to purchase the company at an artificially inflated purchase price."
PPG's auto glass business was
sold a few months later that year to Kohlberg & Co. in
Mount Kisco, N.Y., for $270 million, with PPG retaining a minority
PPG also had filed a counterclaim against Platinum, seeking "appropriate damages, including not only the $25 million 'break-up' fee to which PPG is entitled under the [Asset Sale Agreement], but also additional damages reflecting the economic harm suffered by PPG as a result of the Platinum Equity entities."
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