Manufacturers of Interior Molded Doors Face Lawsuit over Price Fixing

Two companies involved in the manufacture of interior molded doors are named defendants in a class action lawsuit alleging price fixing.

Jeld-Wen and Masonite control 85 percent of the market for interior molded doors and are the sole manufacturers of doorskins, the cosmetic veneer applied to wood composite doors. The defendants are accused of engaging in anti-competitive behavior and engaging in a conspiracy to manipulate the market for their products.

The Product in Question

“Interior molded doors” are a less expensive, lightweight type of door that is used extensively in home construction. These are made with with composite wood core surrounded by a wooden frame, to which the veneer (the “doorskin”) is applied. The doorskin is made from a high-density fibrous mat that is molded into various raised panel designs, offering the appearance of a much more expensive solid wood door at a lower price.

It is also the most indispensable and expensive part of the manufacturing process. Because of this, the markets for doorskins and interior molded doors are interdependent and connected.

Case Background

In the past, there were several “non-integrated” manufacturers of interior molded doors as well as doorskins, meaning that no one company was involved in all steps of the manufacturing process.

According to a complaint filed in December 2018, a company known as Premdor merged with Masonite in 2001, thus creating a “vertically integrated” manufacturing operation in which the production of both doors and doorskins would be done by a single company. Because of concerns over price fixing, the Department of Justice required Premdor to sell off one of its doorskin operations in Pennsylvania to a new company known as CraftMaster Manufacturing, in order to ensure that market competition would remain. That company was later acquired by Jeld-Wen.

Over the next several years, Masonite and Jeld-Wen bought out several smaller companies involved in the manufacture of residential doors, further eliminating competition. According to the present class action lawsuit, Masonite also stopped selling doorskins to smaller companies in 2014, making Jeld-Wen its sole customer. This gave Jeld-Wen a virtual monopoly on the market for interior molded doors.

The Price Fixing Complaint

Plaintiffs claim that Jeld-Wen took unfair advantage of its market position by raising its prices (despite decreases in its own manufacturing costs), ending supply agreements with its own customers and generally crippling smaller competitors. Because of this, the defendants have been able to raise their prices without any checks. The lawsuit also notes that “numerous high-ranking executives have crossed over from one Defendant company to the other and have maintained close relationships dating back to the 1980s.”

Not The First Time

Jeld-Wen has been found liable for engaging in anti-competitive business practices in earlier lawsuits. In February, 2018, a jury awarded $56 million in damages to a plaintiff who claimed his company had been overcharged for the defendant’s products and had suffered substantial losses as a result. The court later ordered Jeld-Wen to divest itself of its CraftMaster operation.

Join a Free Interior Molded Doors Class Action Lawsuit Investigation

If you own or work for a company that sold Jeld-Wen and/or Masonite interior molded doors from October 2012 to the present or if you purchased the doors from a retailer, you may have been the victim of an antitrust price-fixing conspiracy. Legal help is available.

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