International Flavors & Fragrances Inc. (IFF) has reached a proposed $26 million settlement to partially conclude an antitrust class action accusing several fragrance suppliers of coordinating prices in the U.S. ingredients market. The proposed settlement, filed in the U.S. District Court for the District of New Jersey, marks the first resolution in ongoing multidistrict litigation involving several major fragrance suppliers.
The agreement covers claims by a class of direct purchasers – including fragrance and candle manufacturers – who allege that IFF and other producers colluded to fix prices, restrict competition, and limit production of fragrance compounds. The settlement applies to U.S. entities that purchased fragrance ingredients directly from IFF between January 2018 and December 2023, Reuters reported.
Under the proposed deal, IFF will provide “full and timely” cooperation, including access to information, documents, and testimony. The plaintiffs’ legal team has indicated that IFF’s cooperation could strengthen the ongoing case against the remaining defendants, Germany’s Symrise AG and Netherlands-based DSM-Firmenich.
IFF stated that the agreement resolves “the major part of the pending civil class actions” against the company and that it anticipates settling additional “smaller tiers” of related claims. The company emphasized that it continues to deny any wrongdoing, adding that it is cooperating with ongoing regulatory investigations in multiple jurisdictions and is working to resolve them expeditiously.
Lawyers for the plaintiffs – represented by Linda Nussbaum of Nussbaum Law Group, Christopher Burke of Burke LLP, and Hilary Scherrer of Hausfeld – have announced plans to seek court approval for legal fees of up to 33% of the settlement amount, or approximately $8.6 million.
Neither the plaintiffs’ counsel nor representatives of Symrise and DSM-Firmenich immediately responded to requests for comment.
The litigation, In re: Fragrance Direct Purchaser Antitrust Litigation (No. 2:23-cv-02174), began after Swiss and other international competition authorities disclosed investigations into an alleged fragrance industry cartel in 2023. These revelations triggered a series of antitrust lawsuits in U.S. courts, targeting some of the world’s leading fragrance suppliers.
IFF is represented in the case by Boris Bershteyn of Skadden, Arps, Slate, Meagher & Flom LLP.
If approved by the court, the settlement would represent a significant step toward resolving one of the fragrance sector’s most prominent U.S. antitrust disputes in recent years.
