International Flavors & Fragrances Inc. (IFF) has agreed to pay $26 million to resolve claims from direct purchasers accusing it and three other major fragrance ingredient makers of orchestrating a global price-fixing conspiracy, marking the first settlement in sprawling multidistrict antitrust litigation.
In a 44-page motion filed Friday, plaintiffs’ counsel asked U.S. District Judge William J. Martini of the District of New Jersey to preliminarily approve the deal and provisionally certify a settlement class of direct purchasers who bought IFF products between January 1, 2018, and December 31, 2023. The settlement — described by plaintiffs as an “icebreaker” deal — could help pave the way for additional agreements with the remaining defendants: Givaudan SA, Firmenich SA, and Symrise AG.
Key Terms of the Proposed Settlement
The proposed settlement allows class members to opt out or receive a pro rata share of the recovery. Although the filing did not specify the number of eligible claimants or the expected average payout, it said there are likely “hundreds, if not thousands” of potential class members.
The agreement also includes a confidential “blow provision”, giving IFF the right to withdraw from the settlement if too many class members opt out — a standard safeguard in large antitrust class deals.
Class counsel plans to seek up to one-third of the settlement amount (about $8.67 million) in attorney fees and as much as $3 million for litigation costs.
