The complaint, filed in the case M7 Indústria e Comércio de Compensados e Laminados Ltda. v. U.S. Structural Plywood Integrity Coalition, accuses the coalition of fabricating testing results and launching a misinformation campaign to drive third-party certifiers out of the Brazilian market. The suit is a companion case to a substantially identical action pending in the same court.
The plaintiffs include M7 Indústria e Comércio de Compensados e Laminados Ltda., Instituto Brasileiro de Certificações e Inspeções, Tableros Indústria e Comércio de Painéis Ltda., and assignees of claims from Faganello Indústria de Compensados and Itamarati Indústria de Compensados.
The defendants are the unincorporated U.S. Structural Plywood Integrity Coalition and its members: Scotch Plywood Co., Veneer Products Acquisitions, Southern Veneer Specialty Products, Hunt Forest Products, Freres Lumber, Murphy Company, SDS Lumber, and Swanson Group.
According to the complaint, the coalition, comprised of between eight and ten U.S. producers, sought to eliminate Brazilian plywood, which accounted for up to 15% of the $18 billion U.S. structural plywood market, by targeting the certification infrastructure that allows Brazilian mills to sell their products domestically.
The complaint alleges the coalition commissioned testing by the American Plywood Association and Clemson University that the plaintiffs describe as unscientific and biased. The testing purported to show Brazilian plywood failed bending stiffness standards, a claim the plaintiffs argue was designed to create a false public safety narrative.
The complaint cites deposition testimony from Murphy Company, a coalition member, in which the company’s president stated the coalition’s goal was to get "retaliation" for substandard plywood coming into the country. The testimony also indicates the company pays $90,000 to $100,000 in annual dues to the American Plywood Association.
The plaintiffs allege the coalition used these flawed results to sue certifiers PFS-TECO, Timber Products Inspection, and the International Accreditation Service. The suit claims the coalition coerced settlements that forced PFS-TECO and TPI to exit the Brazilian market and imposed new, Brazil-specific requirements on the accreditor IAS.
The complaint further alleges the coalition launched an interference campaign against other potential certifiers, including Benchmark Holdings and Forestwood Industries, threatening them with litigation if they attempted to certify Brazilian plywood.
The suit accuses the coalition of disseminating false statements to building code officials, insurance firms, and wholesalers, claiming Brazilian plywood was "off grade" and posed a safety risk. The plaintiffs argue this campaign poisoned the market, causing a collapse in exports from 60 to 120 million square feet per month.
The complaint seeks damages and injunctive relief under the Sherman Act, the Lanham Act, and New York state law.