French building materials giant Saint-Gobain (SGOB.PA) and other major European makers of construction chemicals are facing a new lawsuit in Philadelphia federal court over claims they conspired to fix the prices of key ingredients that are added to cement, concrete and mortar.
The prospective class-action lawsuit was filed on Wednesday by a general contractor supply company in Jamestown, New York, accusing Saint-Gobain, Swiss firm Sika (SIKA.S), Germany's Master Builders Solutions and other defendants of conspiring to artificially inflate prices.
The lawsuit from M&D Peterson LLC comes after the European Commission, working with British and Turkish competition authorities, announced in October surprise inspections of companies in the construction chemicals sector.
Sika, Saint-Gobain and Master Builders were targets of the probe, the lawsuit said.
A Saint-Gobain spokesperson pointed to a statement that said the group was cooperating and that "at this stage we see no reason to believe there will be an impact" on the company.
Representatives for Sika and Master Builders did not immediately respond to requests for comment.
Sika has said the company was not aware of "any culpability" but was cooperating with the authorities.
Attorneys from the plaintiffs' firm Hausfeld, which filed the lawsuit, on Thursday had no immediate comment.
Investigations announced by the European Commission and other enforcement bodies can drive private civil litigation in the United States.
A group of major European and U.S. flavor and fragrance producers were hit with a wave of private lawsuits in U.S. federal court over the summer after Swiss and other antitrust authorities revealed a price-fixing cartel investigation earlier this year.
In the cement, concrete and mortar case, the key ingredients at the center of the lawsuit come in liquid or powder form and are used to produce qualities in the finished product, according to the lawsuit.
The complaint said Sika and the other defendants "manufacture and sell the vast majority of [the ingredients] sold in the United States."
"Defendants have been secure in their knowledge that their competitors — the other defendants — will not undercut them on price," the lawsuit said.
The lawsuit seeks triple damages under U.S. antitrust law and an injunction that would bar the alleged conspiracy to set prices.
The case is M&D Peterson LLC v. Sika AG et al, U.S. District Court for the Eastern District of Pennsylvania, No. 2:23-cv-04711.
For plaintiff: Jeannine Kenney, Nathaniel Giddings, Scott Martin, Michael Lehmann and others from Hausfeld; Arthur Bailey of Rupp Pfalzgraf
For defendants: No appearances yet
Read more:
St Gobain see no financial impact from EU construction chemicals cartel probe
Sika shares slide after EU raids companies over price-fixing suspicions
EU raids construction chemicals sector over competition concerns
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