NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) -- New York’s Erie County Water Authority has filed an antitrust lawsuit against several major U.S. PVC pipe manufacturers, alleging those manufacturers colluded to create an illegal price-fixing scheme that artificially raised the price of PVC pipes widely used in public water systems and municipal wastewater collection and treatment across the country.
The law firms FeganScott and Douglas & London PC filed the lawsuit on behalf of Erie County Water Authority, claiming that seven companies – which control 90 percent of the PVC market – used an industry information exchange platform to communicate about and coordinate the price for PVC pipes.
The 53-page complaint names Atkore, Diamond Plastics, JM Eagle, National Pipe and Plastics, Otter Tail, IPEX, and Westlake Corporation. It also names Opis, the information exchange platform the suppliers used in the alleged scheme. Opis is owned by Dow Jones.
The complaint, filed in the U.S. District Court for the Northern District of Illinois, claims that over a two-to-three-year span, the companies’ scheme artificially raised the price of municipal PVC water pipes for public water systems nationwide by as much as 500 percent.
According to Elizabeth Fegan, managing partner of FeganScott and one of the attorneys leading the suit, the defendants’ use of the Opis data allowed them to set a price floor for their products, strangling the chance for competition to correctly set the price.
“The PVC manufacturers knew that Opis was only accessible to subscribers, meaning public water suppliers and sewer authorities had no insight into competitor pricing information. The manufacturers colluded to artificially raise prices for their PVC products without scrutiny or accountability,” said Fegan. “While the manufacturers collected historic profits, public water systems and sewer authorities – and their taxpayers – suffered.”
Fegan noted that this is not the first time Opis has been involved in antitrust litigation. According to the suit, Opis was the subject of a 2020 lawsuit brought by the California Attorney General and two energy companies for illegally driving up regular and premium gasoline prices. That case was settled in 2024 for $50 million.
“Opis offers market reports to subscribers, fully aware that these reports could be used to influence pricing strategies or shape competitive practices, especially in markets with little to no competition – such as the PVC pipe market,” added Fegan. “This unfair and exploitative practice must be put to an end.”
“Public water and sewer systems work tirelessly to provide clean drinking water and protect public health and the environment,” said Michael London, founding partner of Douglas & London and lead counsel in ongoing MDL litigation which has recovered more than $12 billion for PFAS contamination in public water systems’ drinking water. “They should not be saddled with high prices for PVC pipes driven by the manufacturers’ corporate greed and conspiracy to avoid competition which would reduce prices.”
The lawsuit seeks to represent local public water systems and municipal wastewater collection and treatment authorities nationwide that purchased PVC pipes manufactured by the defendants. More information can be found at www.feganscott.com.
About FeganScott
FeganScott is a national class action law firm dedicated to helping victims of consumer fraud and antitrust violations. The firm is championed by acclaimed veteran class action attorneys who have successfully recovered $15 billion for victims nationwide. FeganScott is committed to pursuing successful outcomes with integrity and excellence while holding the responsible parties accountable.
About Douglas & London PC
Douglas & London is among the most distinguished and accomplished plaintiffs’ law firms in the country. Since opening our practice in 2002, our indefatigable attorneys and legal support staff have earned us the distinction of being among the top mass tort and trial firms in the country. We have achieved historic and trailblazing results, securing hundreds of millions of dollars in verdicts and billions of dollars in settlements, helping our clients put their lives and communities back together. We specialize in complex litigation, including pharmaceutical, medical device, and general products liability cases, as well as environmental and toxic tort litigation and medical malpractice. Our firm members are often appointed lead counsel in the largest multi-district cases and often designated as trial counsel in some of the largest cases in the civil justice system.
Case no. 1:24-cv-11531
Media Contact:
Mark Firmani
Feganscottpr@firmani.com
