Lawsuits Over Drywall Price-Fixing Move Forward
By Jessica Tyner
There have been so many complaints about drywall manufacturers’ alleged price-fixing that a class action lawsuit over antitrust violations has picked up steam, and a judge recently appointed counsel for the victims. The drywall victims include two types of plaintiffs: homeowners and direct buyers (such as owners of lumber companies). According to the class action lawsuit, there are at least eight drywall manufacturers mixed up in the alleged price-fixing scheme. By working together, it’s alleged that the drywall companies conspired to “fix” the prices of drywall, driving up costs 35 percent.
This happened in 2011, and the 35-percent drywall hike happened simultaneously as the companies nixed their existing job quote pricing system, which kept prices feasible for buyers.
According to many of the drywall manufacturers, the lawsuits have no basis, but clearly several of their customers disagree. When companies engage in price-fixing, it’s an illegal move since it force customers into overpaying because they have no choice. What happens to the contractor who’s suddenly facing a 35 percent bill increase and can’t deliver?
Drywall Consumers Band Together
Price-fixing is illegal, but until now the government hasn’t stepped in when it comes to the drywall industry. This means the drywall victims have been left to their own devices, and there’s little a handful of customers can do when facing numerous drywall companies engaged in antitrust — unless they file a class action lawsuit. The judge overseeing the drywall lawsuits has cited the importance of banding together for everyone’s benefit.
The judge notes the importance of avoiding double work, streamlining processes and generally making the entire issue as fast and easy as possible. It’s easy to overspend and waste the court’s time and money doing the same thing over and over again. Since the drywall victims claim similar circumstances, and there’s power in numbers, it makes sense to consolidate the cases. The drywall lawsuits are just now picking up steam, and it’s expected that more plaintiffs will join the case.
Why Price-Fixing is Illegal
Some business owners don’t understand why price-fixing isn’t fair game. Why shouldn’t a certain industry band together and decide to sell a product at a certain price? It’s against the law because it creates an artificial price, whether it’s in the seller’s favor or not, and rewards inefficiency.
Customers have the right to purchase items at a fair market price, and price-fixing takes that right away. The drywall manufacturers are accused of making prices spike, but it can sometimes be in an industry’s interest to lower prices.
When companies price-fix to an artificially low price, it makes it impossible for other competitors to enter the market. Drywall is an especially difficult industry to experience price-fixing in since it’s a necessary product for building or remodeling homes. When people need it, they really need it. It’s often not a luxury item that someone can do without.
Have You Purchased Drywall Recently?
If you purchased drywall in the past few years, you may have a drywall price-fixing legal claim. There are a few different manufacturers involved and more may be added as the lawsuits move forward. If you think you’re a drywall antitrust victim, you may deserve compensation.
Visit the Drywall Price-Fixing, Antitrust Class Action Lawsuit Investigation to find out more. You can submit your information for a free drywall price-fixing claim review. An attorney will contact you if your case qualifies.
Updated May 24th, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
