Jeld Wen Molded Interior Doors Plant To Be Divested By Company

A federal judge recently mandated changes designed to prevent anti-competitive behavior by the makers of Jeld Wen molded interior doors.

On Dec. 14, federal judge Robert E. Payne ordered Jeld Wen Inc. to divest itself of a Pennsylvania plant and enter into contracts which will ensure that the divestiture produces a reliable seller of molded door skins in the future. A special master will be appointed by the court and will oversee the divestiture process.

The divestiture of the Jeld Wen molded interior doors plant includes everything from the plant itself to inventory, office furniture, computer systems, materials, certifications, licenses, permits, contracts, customer lists, supply agreements, patents trade secrets, other intellectual property, repair and maintenance records, and more.

The judge’s decision was made as part of ongoing litigation surrounding Jeld Wen molded interior doors. Plaintiff Steves & Sons claimed in their suit that Jeld Wen violated federal antitrust laws by destroying competition and securing a monopoly on the molded door market.

Judge Payne’s order finalizes the opinion which he released in October that Jeld Wen molded interior doors and the practices surrounding the products violated federal antitrust acts, according to MarketWatch. The company allegedly reduced competition by acquiring its former competitor CMI, which owned the Pennsylvania plant that is the subject of the divestiture.

Judge Payne sided with plaintiff Steves & Sons in his ruling. The company had requested a divestiture after winning a jury verdict against the Jeld Wen molded interior doors manufacturer. Jeld Wen argued against the divestiture, claiming that it would be a “disaster” for the company’s operations, among other things. However, Judge Payne’s order states that the divestiture is necessary to return competition to the market.

“JELD-WEN felt free to disregard existing contract obligations respecting pricing and to engage in bullying tactics to get increased prices even if that would kill off some of the Independents who were its customers,” the Jeld Wen molded interior doors order said.

Although Judge Payne’s order resolves the matter of divestiture, several other issues are yet unresolved.

“The public interest is best served by ordering divestiture and the related conduct remedies herein provided.” Judge Payne noted, “Without the divestiture and the related conduct remedies […] Steves will suffer irreparable injury […] The hardships Steves will suffer if the divestiture and the related conduct remedies herein provided are not granted substantially outweigh the hardships to JELD-WEN if the divestiture and the related remedies herein provided are granted.”

Jeld Wen reportedly intends to appeal the decision, but Judge Payne wrote that “JELD-WEN shall not take any steps during the pendency of the appeal that would in any way reduce the value of the Towanda facility to a potential acquiring company or would make it more difficult or costly for the acquiring company to supply doorskins to Steves of the type, and in the quantity, that JELD-WEN supplies to Steves.”

Steves is reportedly confident that an appeal will not protect Jeld Wen from owning up to their allegedly unlawful conduct. However, if the alleged behavior continues, Steves’ attorney said in a statement that the company is “ready to continue to fight” to restore balance to the market, according to MarketWatch.

Join a Free Interior Molded Doors Class Action Lawsuit Investigation

If you own or work for a company that sold Jeld-Wen and/or Masonite interior molded doors from October 2012 to the present or if you purchased the doors from a retailer, you may have been the victim of an antitrust price-fixing conspiracy. Legal help is available.

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