NEW YORK—DiCello Levitt on Monday filed a class action lawsuit against the largest U.S. and European automobile tire manufacturers, alleging that the defendants artificially increased prices and engaged in large-scale price fixing of new replacement tires for passenger cars, vans, trucks, and buses.
According to the complaint, Michael Spadafino v. Continental Aktiengesellschaft, et al. filed in the United States District Court for the Southern District of New York, the defendants—the world’s leading tire manufacturers, including Continental, Goodyear, Bridgestone, Michelin, and Pirelli—conspired to artificially inflate prices of their products from at least 2020 to the present. In fact, the complaint alleges that in 2021 and 2022 alone, the average price of tires rose 21.4%, or more than 70% higher than core inflation.
With nearly 9.2 million passenger and commercial vehicles being produced and almost 14 million vehicles being sold in the United States in 2022, the U.S. market calls for a considerable number of tires to be manufactured annually. As a result, the U.S. tire industry has an annual footprint of $170.6 billion.
The complaint alleges that the defendants had ample opportunities to meet and discuss pricing. In addition, due to the replacement tire market being highly concentrated and having considerable barriers to entry, it is more conducive to collusion and cartel-building.
The U.S. lawsuit comes on the heels of a January 2024 investigation by the European Commission, which included unannounced inspections—also known as “dawn raids”— on the premises of tire companies suspected of being in breach of EU competition rules.
“Replacement tires are an essential component of vehicle maintenance. As a result of the alleged conspiracy to raise prices of replacement tires, consumers were forced to pay considerably higher prices for their tires—a purchase vehicle owners usually cannot afford to postpone due to imminent safety concerns. We expect thousands of consumers were impacted by this unlawful price fixing scheme, which inflicted substantial harm to vehicle owners across the United States,” DiCello Levitt’s Antitrust and Competitive Litigation Practice Chair and New York Office Managing Partner Greg Asciolla said.
The case is: Michael Spadafino v. Continental Aktiengesellschaft, et al., Case No. 1:24-cv-01452
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At DiCello Levitt, we’re dedicated to achieving justice for our clients through class action, civil and human rights, business-to-business, public client, whistleblower, personal injury, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.
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