Eaton Avoids $2.4 Billion Damage Claim in Meritor Settlement

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Eaton Corp. dodged a potential $2.4 billion damage claim from Meritor Inc. by agreeing to pay $500 million to head off a jury trial that was set to begin today in federal court in Wilmington, Delaware.

Meritor Transmission and affiliate ZF Meritor LLC sued Cleveland-based Eaton in 2006 for violating antitrust laws. A jury ruled in 2009 that Eaton damaged Meritor and gained 90 percent of the market for truck transmissions by offering “exclusive dealing contracts” and unfair rebates.