NEW YORK (TheStreet) -- Dow Chemical  (DOW) - Get Report announced on Friday that it settled a class-action lawsuit regarding the pricing of its chemicals for $835 million.

The Midland, MI-based chemical company chose to settle the lawsuit due to the increased likelihood for an unfavorable Supreme Court ruling, Dow said in a statement. The lawsuit alleged that Dow conspired with other companies on the price of urethane, Bloomberg reports. 

Though the settlement payment is high, uncertainty is just as unsettling, TheStreet's Jim Cramer wrote in anAction Alerts PLUS article today. Dow is a holding of Cramer's charitable trust. 

"We believe that the settlement -- although substantial in magnitude -- erases uncertainty, as the company was slated to argue the case in front of the Supreme Court later this year," Cramer and Research Director Jack Mohr said in the article. "The death of Supreme Court Justice Antonin Scalia added a layer of uncertainty around the Court's potential ruling, with analysts indicating that, absent Scalia, the likelihood of a meaningfully higher charge had increased."

Dow stock is up by 1.66% to $48.90 in early afternoon trading on Friday. 

(Dow is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)

TST Recommends

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "buy" with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: DOW

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