Top tire makers are sued in US over alleged price fixing

Nokian Renkaat Oyj

07/02/2024 20:44

By Mike Scarcella
       Feb 7 (Reuters) - Major tire manufacturers including
Pirelli  PIRC.MI , Continental  CONG.DE , Michelin  MICP.PA  and
Nokian  TYRES.HE  were sued on Wednesday in U.S. federal court
for alleged price-fixing, days after European Union competition
authorities announced an investigation into a possible cartel.
    The lawsuit was filed by a California resident in Manhattan
federal court and seeks class-action status for U.S. purchasers
of tires from the tire makers since January 2020. Other
companies sued in the case include Bridgestone  5108.T  and
Goodyear  GT.O .
    The six companies and a group of affiliated entities are
accused of artificially inflating the price of new replacement
tires in the United States for vehicles including cars, trucks
and buses.
    Contintental said it has a "zero-tolerance policy when it
comes to compliance and thoroughly follow up on and investigate
all alleged allegations."
    The other defendants either declined to comment or did not
immediately respond to a request for comment.
    Milan, Italy-based Pirelli previously said it had acted
"always in total compliance with all rules and regulations.”
France’s Michelin has said it strictly complies with competition
rules.
    Attorneys for the plaintiff did not immediately respond to a
request for comment.
    The European Commission, which is the EU’s antitrust
enforcement arm, on Jan. 30 announced its investigation of
leading tire manufacturers.
    "The Commission is concerned that price coordination took
place amongst the inspected companies, including via public
communications," the EU executive said in a statement.
    It is common for private civil antitrust lawsuits to follow
European Commission cartel investigations.
    Federal courts in the United States have been flooded with
lawsuits against major building materials companies after the
commission in November said it was investigating potential
price-fixing in the industry.
    The tire industry lawsuit alleged the “U.S. tire industry
for years has been highly concentrated, and there is a history
of antitrust violations by tire manufacturers.” 
    The lawsuit seeks to recover unspecified three-fold damages
and an injunction against alleged anticompetitive practices.
    
    The case is Rena Sampayan v. Continental AG et al, U.S.
District Court, Southern District of New York, No.
1:24-cv-00881.
    For plaintiffs: Gregory Linkh of Glancy Prongay & Murray;
and Dena Sharp of Girard Sharp
    For defendants: No appearances yet
    
    Read more:
    Pirelli, Continental, Michelin and Nokian targeted in EU
raids
    France's Saint-Gobain, others hit with price-fixing claims
in US court
    Flavor, fragrance makers face wave of US antitrust lawsuits
after EU cartel raids

 (Reporting by Mike Scarcella. Additional reporting by Jonathan
Stempel in New York.)