Olin to Take $75 Million Charge After Losing Shintech Lawsuit

Jury verdict against Olin in pricing dispute over vinyl chloride monomer supply contract

Published on Feb. 12, 2026

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Olin Corporation, a leading global manufacturer and distributor of chemical products, announced it will take a one-time, pre-tax charge of $75 million in the fourth quarter of 2025 following a recent jury verdict in favor of Shintech Incorporated in a lawsuit over a pricing dispute and a 2023 maintenance turnaround of a vinyl chloride monomer (VCM) plant. Olin supplies VCM to Shintech under a long-term contract, and the litigation involved a disputed force majeure event.

Why it matters

The verdict against Olin highlights the risks chemical companies face from legal disputes over supply contracts and operational issues. The $75 million charge will impact Olin's 2025 financial results, and the company expects to pay around $185 million, including previously accrued reserves, related to this matter in the first half of 2026.

The details

In April 2023, Shintech filed a lawsuit seeking damages against Olin. After three years of active litigation, the jury returned a verdict in favor of Shintech on February 10, 2026. Olin was disappointed by the verdict and is currently assessing its legal rights and options, though the company believes its actions at the time were appropriate and aligned with industry best practices to prioritize safety.

  • Shintech filed the lawsuit in April 2023.
  • The jury returned a verdict in favor of Shintech on February 10, 2026.
  • Olin will record the $75 million charge in the fourth quarter of 2025.
  • Olin expects to pay around $185 million, including previously accrued reserves, in the first half of 2026 related to this matter.

The players

Olin Corporation

A leading global manufacturer and distributor of chemical products, including chlorine and caustic soda, vinyls, epoxies, and other chemicals. Olin was the defendant in the lawsuit filed by Shintech.

Shintech Incorporated

The plaintiff in the lawsuit against Olin over a pricing dispute and a 2023 maintenance turnaround of a vinyl chloride monomer (VCM) plant. Shintech is a customer of Olin, purchasing VCM under a long-term supply contract.

Blue Cube Operations LLC

A wholly owned subsidiary of Olin Corporation that was also named as a defendant in the lawsuit.

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What’s next

The judge will decide on Tuesday whether to allow Olin to appeal the jury's verdict.

The takeaway

This case highlights the legal and financial risks chemical companies face from supply contract disputes and operational issues, underscoring the importance of strong risk management and contingency planning in the industry.