$80M Dental Supplies Price-Fixing Class Action Settlement Reached

After two and a half years of litigation, the plaintiffs in a dental supply antitrust class action lawsuit say they have hammered out an $80 million settlement agreement with three dental supply companies.

A group of dentists alleged in a number of class action lawsuits that several major dental supply companies engaged in secretive deals to hike the price of their products.

The dental supplies price-fixing class action lawsuits were eventually consolidated into multidistrict litigation in New York.

The dental supply companies, Henry Schein Inc., Patterson Cos. Inc. and Benco Dental Supply Co. Inc., allegedly inflated the prices of a myriad of dental supplies, including x-ray materials, dental cement, and numbing drugs, according to the dental supply antitrust MDL.

The dental supplies price-fixing class action lawsuits state that supplies from the companies are generally routed through clearing houses. This allowed the three suppliers together to control most of the market, alleged the plaintiffs.

The plaintiffs contended that this structure allowed the dental supply companies to engage in antitrust actions and command inflated prices on most dental supplies.

Further, alleged the dental supply antitrust MDL, the supply companies worked to stymie competition from newer, less expensive suppliers.

The dentists alleged that the dental supply companies intimidated trade groups into not working with one newer supplier, SourceOne, as a way to keep prices high.

The dental supply companies argued that there was no systematic scheme to artificially inflate the prices for dentists and consumers. However, the companies failed to get the dental supply antitrust class action lawsuits dismissed.

Under the terms of the dental supply antitrust MDL settlement agreement, the dental supply companies deny any wrongdoing. The details of the settlement are not yet available, but each company will reportedly pay millions to exit the litigation.

According to recent statements made by company representatives, the decision to enter into the settlement agreement was made to avoid the time and expense of protracted litigation.

Additionally, a newer dental supplier, SourceOne, claims it was boxed out by the dental supply companies in litigation related to the dental supply antitrust MDL. One company, Henry Schein, has already settled with SourceOne.

The Federal Trade Commission has also dinged the dental supply companies with its own administrative complaint.

Antitrust activities occur when a group of businesses collude to inflate prices for consumers. They can do this by entering into agreements to sell goods or services at a higher price than supported by the market or by engaging in kickback schemes between businesses in related fields. Ultimately consumers, like the plaintiffs in the dental supply antitrust MDL, may have no choice but to pay the inflated prices.

The lead plaintiffs are represented by Berger Montague, Cohen Milstein Sellers & Toll PLLC, Hausfeld LLP, Susman Godfrey LLP, and The Radice Law Firm PC, among others.

The Dental Supplies Price-Fixing Class Action Lawsuits are In re: Dental Supplies Antitrust Litigation, Case No. 1:16-­cv­-00696, in the U.S. District Court for the Eastern District of New York.