An electrical contractor in Minnesota is suing PVC pipe makers over what he alleges is price fixing, and is seeking to make the case a class action lawsuit.
George Bavolak of Minneapolis owned Metropolitan Energy Service Inc., a provider of both residential and commercial electrical services. He filed the suit at the U.S. District Court for the Northern District of Illinois, Eastern Division.
He is going after a group of pipe makers that collectively control about 90 percent of the wholesale market for PVC municipal water pipe and 95 percent of the wholesale market for PVC electrical conduit in the United States.
Defendants include Atkore Inc., Cantex Inc., Diamond Plastics Corp., Ipex USA LLC, JM Eagle, National Pipe and Plastics Inc., Otter Tail Corp., Prime Conduit Inc., Southern Pine Inc., and Westlake Corp., the lawsuit states.
The legal action alleges the companies "conspired and combined to fix, raise, maintain and stabilize the price of PVC municipal water pipes and PVC electrical conduit pipes (together, 'PVC Pipes') in the United States."
Bavolak claims he suffered financial "injury" as a result. He wants the lawsuit to include "all persons and entities who purchased PVC municipal water pipes or PVC electrical conduit indirectly for end use" from the defendants in the United States from at least Jan. 1, 2021.
The lawsuit alleges the COVID-19 pandemic "provided defendants with the opportunity to implement their conspiracy" and that they used OPIS, a market research and information service, "to exchange price signaling statements and competitively sensitive information."
The lawsuit also names other companies it alleges are "agents and co-conspirators" in the case. They include Core & Main Inc., Ferguson Enterprises Inc., and Fortiline Waterworks, all described as wholesale distributors of municipal pipes.
Law firm Lockridge Grindal Nauen filed the legal action in U.S. District Court fin Chicago on Aug. 23.