Overview
On May 26, 2017, the Judge Harry S. Mattice, Jr. of the United States District Court for the Eastern District of Tennessee granted final approval of a $30 million settlement in this antitrust price-fixing class action brought against McWane Inc. and Charlotte Pipe & Foundry – two of the largest manufactures of cast iron soil pipes in the country, representing 90% of the domestic market.
Cohen Milstein was co-lead counsel in this matter, representing the class of direct purchasers of cast iron soil pipe and fittings.
Case Background
Plaintiffs alleged that AB&I Foundry, Tyler Pipe Company, and McWane, Inc. (collectively, “McWane”) and Charlotte Pipe and Foundry Company and Randolph Holding Company LLC (collectively, “Charlotte Pipe”), as well as the Cast Iron Soil Pipe Institute, Inc. (“CISPI”), first conspired to fix, raise, maintain, and stabilize the prices of CISP from at least January 1, 2006 through December 31, 2013.
Plaintiffs also allege that Charlotte Pipe’s 2010 acquisition and liquidation of Star Pipe Products, Ltd.’s (“Star Pipe’s”) CISP business, which resulted in substantially decreased competition in the market for CISP, was an illegal acquisition, undertaken to facilitate and ensure the success of the alleged price-fixing conspiracy scheme.
The Federal Trade Commission also brought enforcement proceedings against the named defendants challenging the same conduct for which the plaintiffs seek relief. The FTC launched an investigation into Charlotte Pipe’s acquisition of Star Pipe’s CISP business, resulting in the FTC’s filing of an administrative complaint against Charlotte Pipe in April 2013. Subsequently, Charlotte Pipe entered into a consent agreement, prohibiting it from engaging in certain anti-competitive activities.