Is Your Store-Brand Baby Formula Costing More Than It Should? Gerber Lawsuit Raises Price-Fixing Concerns

For many parents, finding affordable baby formula is a constant juggle. Store-brand formulas are lifesavers for many wallets, but a new class action lawsuit has some parents worried. The lawsuit alleges that two major baby formula companies may have been working together to inflate the prices of those very store-brand formulas. 

The worry: Collusion to limit choices

The lawsuit, filed on April 22, 2024, names Gerber and Perrigo, two big names in baby formula. The core allegation? That these companies made a secret deal to limit competition in the store-brand market. Here's how it supposedly worked:

• Perrigo on Top: Perrigo is a major supplier of store-brand formulas that you might find at stores like Walmart and Walgreens.

• Blocking Out the Competition: The lawsuit claims that Perrigo and Gerber cooked up an agreement that made it harder for other companies to enter the store-brand game. This would have given Perrigo a big advantage and could have meant fewer choices for parents.

• Gerber's "First Dibs": The lawsuit alleges that the deal even included a clause giving Perrigo first crack at any extra formula Gerber had lying around. This could have prevented competitors from using that extra formula to create their own store-brand options.

What this means for your wallet (and your choices)

If the allegations hold true, it could mean that parents like you might have been:

• Paying More: With less competition, Perrigo might not have had to fight as hard for your business. This could have led to higher prices for store-brand formulas.

• Stuck with Fewer Choices: With fewer companies making store-brand formulas, there might have been a smaller selection on the shelves for you to compare.

The fight in court and what you can do

Four parents – Thomas Conry from California, Kelsey Daker from Illinois, Hailey Ronayne from Michigan, and Robyn Sussman from Pennsylvania – filed the class action lawsuit against Gerber and Perrigo, Reuters reported. These parents, who all purchased store-brand baby formula, are seeking to represent millions of customers nationwide who may have been impacted by the alleged price-fixing scheme. Here's what they're hoping for:

• Stopping the Deal: A court order to make sure Perrigo and Gerber can't make any more anti-competitive agreements in the future.

• Getting You Compensated: The lawsuit is seeking more than $5 million in damages for parents who may have overpaid for store-brand formula.

It's important to remember that this is a new lawsuit, and the allegations haven't been proven yet. Both Gerber and Perrigo have denied any wrongdoing. The courts will decide if there's any truth to these claims.

Gerber facing another giant lawsuit over toxic baby food claims 

This isn't the only legal hurdle Gerber is facing. The company is also part of a recently consolidated Multidistrict Litigation (MDL) involving hundreds of lawsuits from parents who allege that baby food products from several major manufacturers, including Gerber, contained harmful heavy metals like lead, arsenic, and mercury. 

These metals are linked to developmental problems in children, and the lawsuit raises concerns about potential long-term health effects.

Staying informed and feeding your baby

While the legal battles play out, here are some tips for parents:

• Keep an Eye Out: Stay updated on the news to see how the lawsuits progress.

• Shop Around: Don't be afraid to compare prices and features of different store-brand and name-brand formulas to find the best deal for your little one.

• Talk to Your Doctor: Depending on your baby's needs, generic formulas can be a safe and affordable alternative. Chat with your pediatrician about what's right for your baby.

By staying informed and making smart choices, you can help ensure your baby gets the essential nutrients they need at a fair price.

The plaintiffs and proposed class are represented by Wyatt B. Durrette Jr. and Kevin J. Funk of Durrette Arkema Gerson & Gill PC; Simon B. Paris and Patrick Howard of Saltz Mongeluzzi and Bendesky PC; Michael J. Boni, Joshua D. Snyder, John E. Sindoni, and Benjamin J. Eichel of Boni Zack & Snyder LLC; Jeffrey J. Corrigan and Jeffrey L. Spector of Spector Roseman & Kodroff PC; and Roberta D. Liebenberg and Gerard A. Dever of Fine Kaplan & Black RPC.

The Gerber Perrigo baby food price fixing class action lawsuit is Conry et al v. Gerber Products Company et al, Case No. 3:24-cv-00295 in the U.S. District Court for the Eastern District of Virginia.