Nov 3 (Reuters) - Oshkosh and two other fire
truck manufacturers are facing a growing number of lawsuits
alleging they took part in a nationwide price-fixing scheme that
caused local and municipal fire departments to pay inflated
prices for emergency vehicles.
Newstead Fire Company, based in western New York, lodged the
latest case on Friday in federal court in Wisconsin, where two
other proposed class actions are already pending.
The first of the cases was filed in August by the City of La
Crosse, Wisconsin. Augusta, Maine, also has sued Oshkosh and
others, including REV Group ( REVG ), Rosenbauer America and
Oshkosh subsidiary Pierce Manufacturing.
A judge on Friday paused the litigation for 60 days to allow
coordination among the various plaintiffs. Additional lawsuits
are expected, according to court filings.
REV Group ( REVG ), in a statement, called the lawsuits meritless and
said it would challenge the allegations in court. Oshkosh,
Rosenbauer and the Fire Apparatus Manufacturers' Association,
which is also a defendant, did not immediately respond to
requests for comment.
The lawsuits allege that since at least 2016, the companies
violated antitrust law by coordinating with the manufacturers'
association to exchange sensitive economic data, limit
production and raise prices.
The plaintiffs said in the cases that fire truck prices have
doubled over the past decade, with average pumper trucks now
costing $1 million and ladder trucks topping $2 million.
Municipalities, according to the lawsuits, have been forced
to keep aging trucks in service longer, risking public safety
and straining budgets.
The three lawsuits seek triple damages and a court order to
halt the alleged antitrust violations.
In April, Republican Senator Jim Banks of Indiana and Democratic
Senator Elizabeth Warren of Massachusetts said consolidation in
the fire truck market led by private equity firms has driven up
costs and contributed to a nationwide shortage.
The senators pointed to a series of acquisitions of
independent fire truck makers by private equity firm American
Industrial Partners beginning in 2006. The firm, which is not a
defendant in the lawsuits, had no immediate comment.
In May, the largest firefighters' labor union in the United
States urged antitrust authorities at the U.S. Justice
Department and Federal Trade Commission to investigate
consolidation in the industry.
The trade agency and Justice Department didn't immediately
respond to requests for comment.
Read more:
As fire truck prices hit $2 million, US firefighters demand
an antitrust probe
Fire truck boom highlights divide in US manufacturing