Armstrong World settles suit over alleged anti-competitive practices

Ioannis Pashakis//April 8, 2019

Armstrong World Industries Inc. has agreed to a confidential settlement in a lawsuit that alleged the company engaged in anti-competitive behavior in the ceiling industry.

The Manor Township, Lancaster County-based manufacturer plans to pay an undisclosed amount to Chicago-based Rockfon to settle allegations that it monopolized the sales of ceiling tiles in the U.S.

At the time in 2017 that Rockfon filed suit in the U.S. District Court in Delaware, Armstrong accounted for 55 percent of ceiling-tile sales in the country, according to the filing. Armstrong reported net sales of $975.3 million last year.

Rockfon claimed that through the use of exclusivity agreements with U.S. distributers, Armstrong allegedly maintained a monopoly in the market.

Under the agreement, Armstrong will be able to keep its exclusive agreements with distributers and does not admit to any wrongdoing, according to a filing with the U.S. Securities and Exchange Commission.

Armstrong and Rockfon were not immediately available for comment.

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