The industrial gas company Praxair subsidiary NuCO2 has been hit with a new class action lawsuit by two of its customers, alleging it used deceptive pricing practices.

The lawsuit was filed by plaintiffs Townhouse Restaurant of Oviedo Inc. and Estero Bay Hotel Co., both small businesses in Florida and both customers of the Praxair subsidiary NuCO2. These businesses allege that NuCO2 uses a few means of deceptive pricing in order to bump up their profits.

There are two main deceptive pricing issues that the lawsuit cites. First, the businesses claim that “NuCO2 has carried out a systematic deceptive scheme to charge its customers more than the agreed amounts. NuCO2 enters into the agreements knowing that it will increase the promised prices without justification.”

The plaintiffs argue these price increases are not insubstantial—in fact, the lawsuit notes that businesses under these contracts end up paying as much as 30 percent more per month than agreed upon with NuCO2.

Second, the lawsuit claims that NuCO2 charges its customers a bogus fee which is supposedly meant to deal with fuel costs, but is actually meant solely to increase their profits. According to the lawsuit, this fee is often disguised as a “fuel surcharge,” “fuel charge,” “energy charge,” or “transportation charge.”

The plaintiffs claim these are hidden fees and completely unrelated to fuel costs. These charges—through raising prices more than agreed and through implementing bogus fees—are violations of the Florida Deceptive and Unfair Trade Practice Act, the lawsuit alleges. They are also a breach of contract and a violation of the duty of good faith and fair dealing, the plaintiffs claim.

The lawsuit was filed as a class action, since the plaintiffs believe that many other businesses have been affected by Praxair’s allegedly deceptive pricing in a similar fashion due to their belief that the contracts are preprinted and standard, used for most if not all customers. The class action proposes two distinct Classes: a Rate Increase Class and a Fuel Surcharge Class, depending on which deceptive practices the Class Members have experienced.

The lawsuit was filed on April 19, 2019, in the U.S. District Court for the Fort Pierce Division of the Southern District of Florida.

Who is Praxair?

Prior to its 2018 merger with German-based Linde AG, Praxair, Inc. was a global industrial gas company. At that time, it was the largest such operation in the Western Hemisphere and the third-largest in the world by revenues.

Over one hundred years earlier, Praxair was the first North American company to develop markets for cryogenically separated oxygen. The cryogenic process separates the air that virtually all living creatures on Earth breathe into its various components, the most plentiful of which are nitrogen and oxygen; other gases, including argon and other rare inert gases can also be extracted with this method.

The oxygen that is produced through cryogenic separation is exceptionally pure, with a level of 99.5 percent. It can then be stored in liquid form and distributed to various industries, including health care facilities, industrial welding and (when remixed with other gases) suppliers of oxygen tanks for deep-sea diving and high altitude flight.

Other industries that have purchased air products from Praxair include breweries and bottling plants, steel fabricators, testing labs, glass manufacturing and more.

A Pattern of Behavior?

Back in 1996, the Chicago Tribune reported on the settlement of a class action filed against another Praxair subsidiary, CBI Industries. A unit of the latter, Liquid Carbonic, was charged with unfair pricing schemes that started in 1968 and continued for the next 24 years. Although Praxair had nothing to do with the allegations, it acquired CBI and Liquid Carbonic’s liabilities when it took over the companies.

Filing a Praxair Deceptive Pricing Lawsuit

Praxair is currently being investigated for potentially implementing deceptive pricing practices, such as bogus fuel charges or locking contracts and raising prices without proper justification. A different Praxair subsidiary, CBI industries, previously agreed to settle a lawsuit for $23 million back in 1996. Other fleet-based businesses like Waste Industries and AmeriGas have agreed to substantial settlements when called on the carpet for assessing allegedly bogus fees.

If your company has been affected by Praxair deceptive pricing or similar issues from Praxair subsidiary NuCO2, you may be able to file a lawsuit and pursue compensation. Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

The Praxair Subsidiary NuCO2 Deceptive Pricing Lawsuit is Case No. 2:19-cv-14085-RLR, in the U.S. District Court for the Pierce Division of the Southern District of Florida.

This article is not legal advice. It is presented
for informational purposes only.