LOS ANGELES--(BUSINESS WIRE)--Mar. 26, 2014--
Reliance Steel & Aluminum Co. (the “Company” or “Reliance”) (NYSE:RS)
announced today that a Houston, Texas jury returned a verdict yesterday
against the Company and its subsidiary, Chapel Steel Corp. (“Chapel”),
along with four other co-defendants in an antitrust lawsuit filed in the
United States District Court for the Southern District of Texas. As
discussed in the Company’s Annual Report on Form 10-K for the period
ending December 31, 2013 filed with the Securities and Exchange
Commission, Reliance has been involved in legal proceedings brought by
two former employees who left the Company 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 expected to be
trebled under the federal antitrust laws. Reliance and Chapel disagree
with the verdict and intend 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.
Commenting on the verdict, David Hannah, Reliance’s Chairman of the
Board and Chief Executive Officer, said, “We are deeply disappointed
with the outcome of this trial and we continue to believe that Reliance
and Chapel acted appropriately and within their legal rights.”
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California,
is the largest metals service center company in North America. Through a
network of more than 290 locations in 39 states and ten countries
outside of the United States, the Company provides value-added metals
processing services and distributes a full line of over 100,000 metal
products to more than 125,000 customers in a broad range of industries.
This press release contains certain statements that are, or may be
deemed to be, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may include, but are not limited to, discussions of our
business strategies and our expectations concerning future results of
operations, margins, profitability, liquidity and capital resources. In
some cases, you can identify forward-looking statements by terminology
such as "may," "will," "should," "could," "would," "expect," "plan,"
"anticipate," "believe," "estimate," "predict," "potential" and
"continue," the negative of these terms, and similar expressions.
These forward-looking statements are based on management's estimates,
projections and assumptions as of today’s date that may not prove to be
accurate. Forward-looking statements involve known and unknown risks and
uncertainties and are not guarantees of future performance. Actual
outcomes and results may differ materially from what is expressed or
forecasted in these forward-looking statements as a result of various
important factors, including, but not limited to, those disclosed in
reports we have filed with the Securities and Exchange Commission (the
"SEC"). As a result, these statements speak only as of the date that
they are made, and Reliance disclaims any and all obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Important risks and
uncertainties about our business can be found in our Annual Report on
Form 10-K for the year ended December 31, 2013 filed with the SEC.
Source: Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co.