Overview
On February 9, 2024, the Honorable P. Casey Pitt of the U.S. District Court for the Northern District of California denied Defendants’ motion dismiss this putative antitrust price-fixing class action against Energizer Holdings and Wal-Mart, Inc.
Plaintiffs allege that since 2018, Walmart and Energizer entered into an illegal agreement pursuant to which Walmart would give Energizer preferential sales treatment at its stores while Energizer would monitor Walmart’s competitors, including online competitors, to keep them from undercutting Walmart’s retail prices for Energizer batteries and, if necessary, increase wholesale prices charged to the competitors. Plaintiffs allege that the agreement remains in effect today.
Cohen Milstein is leading this class action on behalf of consumers who purchased Energizer products indirectly from retailers.
Case Background
Energizer and Duracell are the two main manufacturers of disposable batteries in the United States. Together they account for 85% of U.S. battery sales.
Walmart is the world’s largest company by revenue. It operates thousands of retail stores in the United States. It is a major retailer of batteries. In 2012, Walmart purchases accounted for 20% of Energizer’s overall sales. Until 2013, Energizer had an exclusive contract to supply batteries to Sam’s Club, Walmart’s discount warehouse chain.
Plaintiffs in this putative class action allege that as early as January 2018, Walmart and Energizer entered into an agreement pursuant to which Walmart would give Energizer preferential treatment at its stores while Energizer would monitor Walmart’s competitors, including online competitors, to keep them from undercutting Walmart’s retail prices for Energizer batteries and, if necessary, increase wholesale prices charged to the competitors. Plaintiffs allege that the agreement remains in effect today.
Plaintiffs further allege that the agreement between Energizer and Walmart resulted in an overall increase in the retail price for Energizer’s batteries that began in 2018. By April 2018, prices had increased by 8% from the year before. Throughout 2019, 2020, and 2021, Energizer continued to roll out additional wholesale price increases: 8% for certain batteries in mid-2019, 10% for all products in late 2020, 10% for the “MAX” line of batteries in April 2021, and 11% for all household batteries in June 2021. Walmart, too, increased its retail prices for Energizer products: a 20% jump for some products in late 2019 and another 40% jump in early 2020. For example, Walmart’s retail price for 24 Energizer Max Alkaline AAA batteries rose from $12.78 in May 2019 to $16.24 by July 2019, and stayed around that level for the following twelve months.
Plaintiffs argue that the scheme benefited Energizer because it was able to enjoy inflated wholesale prices and preferential treatment at Walmart stores. And they argue that it benefited Walmart because it was able to inflate its retail prices for Energizer products without being undercut by other retailers.