New York AG Files Action Against Tempur-Pedic

March 31, 2010  by in UnCategorized   

By Home Furnishings Business in Legal on April 1, 2010

Premium mattress and pillow manufacturer Tempur-Pedic International Inc. (NYSE: TPX), Lexington, Ky., confirmed Tuesday that it has been notified of an action filed against the company by New York Attorney General Andrew M. Cuomo.

As Tempur-Pedic has previously disclosed, the New York Attorney General's office had requested that the company consider discontinuing its unilateral retail price policy in the State of New York, and informed the company that it may bring an enforcement action against the company under New York law if Tempur-Pedic chose not to do so.

On Monday, the Office of the Attorney General filed suit in New York state court against Tempur-Pedic with respect to this matter.

"We are disappointed with the New York Attorney General's action earlier this week," said Tempur-Pedic CEO Mark Sarvary. "It was
preceded by a lengthy antitrust investigation in which the Company cooperated fully."

In his complaint, Cuomo does not charge Tempur-Pedic with any violation of state or federal antitrust law; instead he claims the company violated a 1975 New York state law which declares certain contractual provisions to be unenforceable.

"We believe the Attorney General's claim that Tempur-Pedic violated state law is simply wrong, and we intend to defend the case vigorously," Sarvary said.