Eaton Corp. settles lawsuit with ZF Meritor

Special to The Freeman

June 23, 2014

WAUKESHA Eaton Corp. said Monday it has agreed to pay ZF Meritor LLC $500 million to settle an antitrust lawsuit.

The lawsuit, which was filed in 2006, alleged that Eaton offered rewards to commercial truck makers that used its transmissions.

"It is in the best interests of Eaton shareholders to settle this matter," said Alexander M. Cutler, Eaton chairman and chief executive officer. "The settlement results in a permanent resolution of the matter and removes the uncertainty of a trial and a lengthy appeal process."

Cleveland-based Eaton, a power management company, owns the Cooper Power Systems facilities in Waukesha and South Milwaukee. ZP Meritor is a joint venture between a Meritor Inc. subsidiary and ZF Friedrichshafen AG, and Meritor Transmission Corp. Inc.