Current Cases / Drywall Antitrust Lawsuits
Contractors throughout North America have initiated antitrust lawsuits against several of the largest drywall manufacturers alleging a price-fixing conspiracy implemented last year that resulted in a 35% price increase for the material used in huge quantities in new home construction. In addition, this conspiracy is alleged to have included the abolition of a competitive practice known as “job quotes” which, for decades, had been a widely-accepted standard within the drywall industry. This practice had previously enabled contractors to lock in the price of gypsum board for the entire duration of a project.
Drywall Antitrust LawsuitThe first antitrust lawsuit brought against drywall manufacturers was filed by Sierra Drywall Systems, Inc., on December 20, 2012 in the Eastern District of Pennsylvania. Subsequent complaints have been filed in the Western District of North Carolina.
According to Sierra Drywall’s complaint, the average new home in the United States incorporates more than seven tons of drywall, thus creating a massive market for gypsum board. The list of defendants named in this litigation includes:
• USG Corp
• United States Gypsum Co.
• New NGC Inc.
• LaFarge North American
• CertainTeed Corp.
• Georgia-Pacific
• American Gypsum Co.
• TIN Inc., dba Temple-Inland
• PABCO Building Products
It is alleged that several of these defendants announced 35% cost increases in rapid succession, while simultaneously halting the practice of job quotes, early last year. It is speculated that the weak North American housing market may have served at the impetus for the alleged price-fixing conspiracy.
Important Notice
Persons seeking to preserve any potential legal claims should contact an attorney promptly, since all states have mandatory time periods in which lawsuits must be filed with the courts; otherwise, they may be forever barred.
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