AmeriGas, Blue Rhino Propane Tank Indirect Purchasers Denied Cert in Litigation Alleging Collusion

AmeriGas Blue Rhino Propane Tank MDL Overview: 

• Who: Indirect purchasers of propane tanks were denied Class certification for claims against AmeriGas and Blue Rhino. 
• Why: Indirect purchasers claim AmeriGas and Blue Rhino pressured retailers into selling underfilled propane tanks for full price—overcharging consumers.
• Where: The multidistrict litigation (MDL) is pending in Missouri federal court.

A group of propane tank purchasers who alleged AmeriGas and Blue Rhino pressured retailers to sell underfilled tanks for full price failed to get Class certification for claims they overpaid for gas. 

The judge overseeing the multidistrict litigation (MDL) ruled the indirect purchasers—who bought the propane tanks for home use, including barbecue grills and outdoor heaters—failed to show predominant, common legal issues. 

Specifically, the judge determined the indirect purchasers had not shown that all end consumers across the more than a dozen proposed Classes had been overcharged.

“Plaintiffs and their expert have failed to carry their burden of demonstrating that class-wide impact and damages can be established with common proof, as is required,” the judge said. 

The judge determined that not only had the plaintiffs’ expert failed to show end customers suffered common harm, the wholesale prices had in fact been “regularly negotiated,” “individually set,” and “highly dispersed” between the gas companies and each retail customer. 

Further, the expert analysis only showed “whether there was a change in the retail price per gallon relative to a change in wholesale price per gallon for the propane exchange tanks purchased and resold by three retailers,” the judge said. 

AmeriGas, Blue Rhino Accused of Selling Underfilled Propane Tanks in Class Actions

In addition to AmeriGas and Blue Rhino, indirect purchasers had filed a complaint against the retailers—including Lowes and Walmart—who sold them the propane tanks in 2008. 

A Class of direct purchasers—such as auto repair shops and home improvement stores—had previously reached a $12.6 million settlement agreement with AmeriGas and Blue Rhino in 2019. 

In recent years, AmeriGas paid $6.5 million to end a class action lawsuit alleging the company colluded with Blue Rhino to lower the amount of propane in their pre-filled propane tanks from 17 pounds to 15 pounds without also reducing the price.

In 2011, AmeriGas reached a $21 million class action settlement with consumers in 2011 to resolve claims it and Columbia Propane Corporation failed to properly install and inspect customers’ underground propane system lines. 

Do you believe AmeriGas and Blue Rhino pressured retailers into overcharging customers for underfilled propane tanks? Let us know in the comments! 

The plaintiffs are represented by Stueve Siegel Hanson LLP, Hagens Berman Sobol Shapiro LLP, and The Paynter Law Firm PLLC.

The AmeriGas, Blue Rhino Underfilled Tanks MDL is In re: Pre-Filled Propane Tank Antitrust Litigation, Case No. 4:14-md-02567, in the U.S. District Court for the Western District of Missouri.

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