Drywall Price-Fixing Class Action Lawsuits Move Forward
By John Curran
General contractors and consumers who renovated their homes may have paid too much for sheet rock, according to claims raised in a new drywall price-fixing class action lawsuit investigation. Several class action lawsuits have already reached the courtroom, with some cases citing antitrust collusion on behalf of private citizens and others focusing on vendors such as Home Depot, Lowes and other home improvement stores.
The allegations of activities are generally the same, however. Gypsum, the key component used in drywall, is a commonly occurring material that is relatively cheap to use. Therefore, with the loss of revenue due to the housing bubble bursting, several manufacturers are alleged to have fixed the prices of drywall.
Doing so would help maintain some level of sales figures by artificially inflating costs and therefore profits, according to the class action lawsuit claims. Victims say that they were unable to get fair prices because of an illegal invisible hand in the market created by these drywall manufacturers. Larger construction companies also say that the prices of drywall were inflated during the course of projects, when prior to the housing bubble, they were able to get a guaranteed fixed rate over the year or more that work required.
Antitrust lawsuits concerning the alleged drywall price-fixing conspiracy have been centralized in the Eastern District of Pennsylvania as part of multidistrict litigation. These lawsuits have been filed on behalf of contractors and home improvement enthusiasts as well as by stores that sell drywall. Any pre-trial discovery and case developments in the drywall price-fixing MDL will occur in front of the same judge, Michael M. Bayson, in Philadelphia.
What may be concerning for some homeowners and home repair contractors about this drywall price-fixing scheme is that many bought sheet rock and other drywall materials because they could not afford to buy a new home, so they chose to renovate their existing one instead. It is unclear what damages are sought by drywall lawsuit lawyers, but it could be hundreds of millions of dollars or more.
People who have purchased drywall or other gypsum materials since 2008 may want to consider seeking legal action against the material manufacturer that produced the boards they purchased. Get in touch with an antitrust attorney at the Drywall Price-Fixing, Antitrust Class Action Lawsuit Investigation. Filling out the short form there is the first step in getting a free legal review of one’s eligibility. Any successful settlement or jury award could defray the costs added on by alleged price increases for these materials.
Updated May 20th, 2013
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