Tire Companies Seek Dismissal of Price-Fixing Class Action Lawsuit

Case Overview: A class action lawsuit has been filed against several major tire manufacturers, alleging that they conspired to fix the prices of replacement tires. The tire companies have filed a motion to dismiss the lawsuit.

Consumers Affected: Consumers who purchased replacement tires.

Court: U.S. District Court for the Northern District of Ohio

A new tire is placed on the tire storage rack in the car workshop

Goodyear, Bridgestone, and Others Call Antitrust Claims "Far-Fetched"

Goodyear, Bridgestone, Michelin, Continental, Nokian, and Pirelli are fighting back against claims they colluded together to fix the prices of replacement tires in the U.S. market, filing a request to dismiss three class action lawsuits accusing them of just that. 

The tire manufacturers claim that the lawsuits fail to provide evidence of an agreement to artificially inflate prices, dismissing the allegations as speculative and unsupported,  Reuters reports.

Tire Companies Accused of Price-Fixing in Class Action Lawsuit

The class action lawsuits, filed by consumers, auto dealerships, and other purchasers, were triggered by a European Commission antitrust investigation into tire manufacturers in Europe. 

Filed in February, the lawsuits claim that the tire companies conspired to raise prices on replacement tires, increasing costs for consumers across the U.S. The plaintiffs argue that this price-fixing conspiracy led to a 21.4% increase in tire prices from 2021 to 2023.

With replacement tire sales in the U.S. reportedly reaching $57 billion in 2023, the lawsuit alleges that the tire makers manipulated this multibillion-dollar market. The class actions accuse the companies of violating U.S. antitrust laws, particularly the Sherman Act.

Companies Deny Allegations, Call Claims "Far-Fetched"

However, the tire manufacturers are pushing back hard against the allegations, calling the claims "far-fetched." In their joint court filing, the companies claim that the plaintiffs have failed to present any factual evidence to back their conspiracy claims. 

They argue that the plaintiffs are attempting to "create a conspiracy out of thin air," relying solely on the existence of a European Commission probe, which they argue is irrelevant to U.S. law.

The tire makers emphasized that the European Commission investigation is still in its preliminary stages and has not resulted in any findings of wrongdoing. They pointed out that investigations alone are insufficient grounds for legal action in the U.S., especially under different antitrust regimes. 

The companies maintain that their pricing decisions were based on "rational and competitive behavior" in a concentrated market rather than any unlawful agreement to fix prices.

Tire Industry Faces Multiple Legal Challenges

The price-fixing lawsuit is not the only legal battle facing tire manufacturers. In a separate case, the 13 largest U.S. tire companies are being sued by environmental groups over the use of a chemical known as 6PPD, which is found in tires and is believed to be killing salmon in rivers along the Pacific Coast. 

The lawsuit, filed by California fishing organizations, alleges that 6PPD, which helps preserve rubber in tires, breaks down into a toxic byproduct that enters waterways, endangering aquatic life.

The fishing groups, represented by Earthjustice, argue that tire companies have known about the environmental risks of 6PPD for decades but failed to take action. The lawsuit seeks to stop the use of this chemical, which has been linked to the decline of salmon and other fish species.

Price-Fixing Allegations Target Companies Across Various Industries

Meanwhile, the tire industry is far from alone in facing antitrust accusations. Other major corporations have also been caught up in price-fixing lawsuits. Recently, several hotel chains were hit with a class action lawsuit for allegedly using AI-powered pricing algorithms to inflate prices for extended stay guests. 

In a separate case, hotel operators like Caesars Entertainment have been accused of using similar algorithms to artificially raise room rates.

The Department of Justice has also filed an antitrust lawsuit against RealPage, a company that provides software to landlords. The lawsuit alleges that RealPage's technology allows landlords to coordinate rent prices, leading to inflated rental rates across the country. 

Case Details

  • Lawsuit: In Re: Passenger Vehicle Replacement Tires Antitrust Litigation
  • Case Number: 5:24-md-03107-SL.
  • Court: U.S. District Court for the Northern District of Ohio 

Have you noticed price increases or lack of competition when buying replacement tires? Share your experiences and thoughts in the comments below.

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