Otter Tail Reaches $39.5M Settlement in PVC Pipe Antitrust Lawsuit

In a regulatory filing, Otter Tail said that as previously reported, in 2024, putative federal class action lawsuits alleging violations of the antitrust laws were filed against Otter Tail Corporation and two subsidiaries, along with more than twenty other PVC pipe manufacturers. The Court has allowed three putative classes: a Direct Purchaser Class, a Non-Converter Seller Purchaser Class, and an End-User Class, and together with the DPPs and the NCSPs, the "Putative Classes." On May 28, 2026, the company entered into settlement agreements with two of the three Putative Classes, the DPPs and NCSPs, individually and on behalf of the putative DPP and NCSP class members. The claims of the EUPs remain pending. Subject to the satisfaction of certain conditions, including preliminary and final approval by the Court, the company's subsidiaries, Northern Pipe Products, Inc. and Vinyltech Corporation, have agreed to pay 1) an aggregate of $39.5M into a settlement fund to resolve all claims asserted, or that could have been asserted, by the DPPs against the Company and 2) an aggregate of $34M into a settlement fund to resolve all claims asserted, or that could have been asserted, by the NCSPs against the company, in each case relating to the alleged conduct at issue in the PVC Pipe Antitrust Litigation. If the Settlement Agreements are preliminarily approved by the Court, the settlement payments will be made on or about 21 days thereafter. The settlement amounts are inclusive of the recovery amounts for class members, any attorneys' fees awarded to counsel for the DPPs and NCSPs, and the costs of administering the settlements. The DPPs and NCSPs have agreed to file motions seeking preliminary approval of the Settlement Agreements as soon as practicable. The execution of the Settlement Agreements does not constitute an admission by the company of any wrongdoing, fault, or liability, and the Company does not admit any wrongdoing, fault, or liability. The company determined that resolving the DPP and NCSP claims now is in its best interests. Although the company was prepared to continue defending its position, and will continue to do so with respect to the EUP claims, the Settlement Agreements meaningfully reduce the uncertainty, distraction, and significant costs and exposure associated with protracted and complex class action antitrust litigation and further enable the company to maintain its focus on executing its business strategy. The company anticipates utilizing available cash to fund these settlement payments. These settlements are not expected to have a material adverse effect on the company's financial position or liquidity.