According to a Reuters article, an electric utility filed an antitrust lawsuit Tuesday in the U.S. District Court for Northern Illinois, accusing several major PVC pipe manufacturers of conspiring to overcharge municipal and commercial buyers.
The lawsuit, filed by George Bavolak, owner of Metropolitan Energy Service in Minnesota, alleges that companies like Westlake, Atkore, Otter Tail (NASDAQ:) and others began price-fixing in 2021.
It is alleged that the companies began fixing prices by sharing competitively sensitive data with industry publication OPIS to unlawfully coordinate prices.
The pipes in question are used for drinking water and protecting bundled wires.
Reuters said the lawsuit, which seeks class-action status, accuses the defendants of violating U.S. antitrust laws.
According to the release, OPIS is also named as a defendant in the case.
In response to the lawsuit, Otter Tail, one of the accused companies, said it will “vigorously” fight the claims. However, Reuters noted that Westlake, Atkore, JM Eagle and OPIS have not yet responded to requests for comment.
The lawsuit alleges that the defendants’ recent “historic” profit margins were driven in part by higher prices due to COVID-related supply chain disruptions.
Bavolak’s attorneys at Lockridge Grindal Nauen emphasized the need to hold companies accountable for using the pandemic as a cover for illegal price-fixing.
According to Reuters, Bavolak is seeking class action status for contractors, cities and others who allegedly overpaid for PVC pipes. The lawsuit suggests there could be hundreds of thousands of members in the proposed class. Bavolak is seeking unspecified monetary damages and an injunction to stop the alleged price coordination.