Sigma to Pay $4.9M to Settle Pipe Fitting Price-Fixing Class Action

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On May 22, Sigma Corp. agreed to a $4.9 million price-fixing class action settlement in New Jersey federal court, resolving allegations by a group of direct purchasers who allege that Sigma and two other companies engaged in price-fixing and anti-competitive behavior in the selling of ductile iron pipe fittings.

According to the Sigma price-fixing class action settlement, Sigma has agreed to cooperate on various litigation procedures, including document authentication, witness deposition, clarification of business transactions, and finally cost and rebate information that will ultimately help plaintiffs in their class action lawsuits against the remaining two non-settling pipe-fitting companies.

This Sigma class action settlement will provide relief to the named plaintiffs, as well as a Class of:

“all persons or entities in the United States that Purchased DIPF directly from any Defendant at any time from January 11, 2008, through June 30, 2011; and all persons or entities in the United States that purchased Domestic DIPF directly from McWane or SIGMA at any time from September 17, 2009, through December 31, 2013.”

The Sigma price-fixing class action lawsuit states that after months of mediation, both the plaintiffs and Sigma agreed to this $4.9 million principal settlement amount, which will be paid in three equal amounts by May 2017. “Plaintiffs have avoided the potential risks inherent in complex antitrust class action litigation and secured significant benefits for the settlement classes,” the price-fixing class action lawsuit states.

Sigma, along with Star Pipe Products Ltd. and McWane, were originally sued in February 2012 by a group of direct purchasers, claiming that between January 2008 and March 2011 the three companies agreed to fix and maintain ductile iron pipe fitting prices, which are materials used in both wastewater and municipal water systems. Additionally, this Sigma price-fixing class action lawsuit alleges McWane and Sigma were involved in another conspiracy to keep McWane as the top U.S. pipe fitting company.

According to the Sigma class action lawsuit, McWane monopolized the pipe fitting market and continued to sustain this U.S. market power by making a deal with Sigma, in which Sigma agreed to not enter into the U.S. fitting market (thus creating a new competitor for McWane) and would sell McWane products instead of their own Sigma pipe fittings.

In May 2012, a New Jersey federal court consolidated the direct purchasers of several pipe fitting price fixing class action lawsuits into one pipe fitting price-fixing multidistrict litigation. Throughout this litigation, Sigma pleaded with the court to have the case Sigma class action lawsuit dismissed, pointing out that the Federal Trade Commission dismissed all McWane conspiracy claims in 2014. However, U.S. District Judge Anne E. Thompson was unconvinced by Sigma’s argument, ruling that this FTC decision was not binding for this price-fixing class action lawsuit.

The plaintiffs are represented by Maryra V. Tarantino of Lite DePalma Greenberg LLC, Karen Confoy of Fox Rothschild LLP, Robert N. Kaplan, Richard J. Kilsheimer, Gregory K. Arenson, Elana Katcher and Gary L. Specks of Kaplan Fox & Kilsheimer LLPand Kit A. Pierson, Robby Braun and Christopher J. Cormier of Cohen Milstein Sellers & Toll PLLC.

The Sigma Price-Fixing Class Action Lawsuit is In Re: Ductile Iron Pipe Fittings (“DIPF”) Direct Purchase Antitrust Litigation, Case No. 3:12-cv-00711, in the U.S. District Court for the District of New Jersey.

UPDATE: Instructions on how to file a claim for the ductile iron pipe fittings class action settlements are now available! Click here or visit www.DIPFDirectSettlement.com for details.