Major tire manufacturers including Pirelli (PIRC.MI), Continental (CONG.DE), Michelin (MICP.PA) and Nokian (TYRES.HE) were sued on Wednesday in U.S. federal court for alleged price-fixing, days after European Union competition authorities announced an investigation into a possible cartel.
The lawsuit was filed by a California resident in Manhattan federal court and seeks class-action status for U.S. purchasers of tires from the tire makers since January 2020. Other companies sued in the case include Bridgestone (5108.T) and Goodyear (GT.O).
The six companies and a group of affiliated entities are accused of artificially inflating the price of new replacement tires in the United States for vehicles including cars, trucks and buses.
Contintental said it has a "zero-tolerance policy when it comes to compliance and thoroughly follow up on and investigate all alleged allegations."
The other defendants either declined to comment or did not immediately respond to a request for comment.
Milan, Italy-based Pirelli previously said it had acted "always in total compliance with all rules and regulations.” France’s Michelin has said it strictly complies with competition rules.
Attorneys for the plaintiff did not immediately respond to a request for comment.
The European Commission, which is the EU’s antitrust enforcement arm, on Jan. 30 announced its investigation of leading tire manufacturers.
"The Commission is concerned that price coordination took place amongst the inspected companies, including via public communications," the EU executive said in a statement.
It is common for private civil antitrust lawsuits to follow European Commission cartel investigations.
Federal courts in the United States have been flooded with lawsuits against major building materials companies after the commission in November said it was investigating potential price-fixing in the industry.
The tire industry lawsuit alleged the “U.S. tire industry for years has been highly concentrated, and there is a history of antitrust violations by tire manufacturers.”
The lawsuit seeks to recover unspecified three-fold damages and an injunction against alleged anticompetitive practices.
The case is Rena Sampayan v. Continental AG et al, U.S. District Court, Southern District of New York, No. 1:24-cv-00881.
For plaintiffs: Gregory Linkh of Glancy Prongay & Murray; and Dena Sharp of Girard Sharp
For defendants: No appearances yet
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