Berman DeValerio is representing plaintiffs in an antitrust class action against Eaton Corporation (“Eaton”), the dominant producer of Class 8 truck transmissions, and the Original Equipment Manufacturers (“OEMs”) of Class 8 heavy duty trucks in the United States. Eaton and the OEMs are accused of engaging in a wide-ranging, multi-year conspiracy to monopolize the market and raise prices of Class 8 truck transmissions.
According to the complaint, the defendants’ conduct between October 1, 2002 and the present has caused plaintiffs to pay more for these heavy duty truck transmissions, have less choice within the market and suffer from a decrease in product innovation. Berman DeValerio is the first law firm to file this lawsuit on behalf of the class of direct purchasers of Class 8 heavy duty trucks containing these transmissions. The lawsuit is intended to put an end to the defendants’ exclusionary practice and ensure that purchasers of overpriced linehaul transmissions are compensated. The U.S. Department of Transportation defines Class 8 trucks as those with a Gross Vehicle Weight Rating of more than 33,000 pounds.
The lawsuit, filed March 31, 2010 in the District of Delaware, accuses Eaton Corporation; Daimler Trucks North America LLC; Freightliner LLC; Navistar International Corporation; International Truck and Engine Corporation; Paccar Inc.; Kenworth Truck Company; Peterbilt Motors Company; Volvo Trucks North America; and Mack Trucks, Inc. of violating Sections 1 and 2 of the Sherman Act, 15 U.S.C. 1 and 2, and Section 3 of the Clayton Act, 15 U.S.C. 14.
The complaint alleges that beginning in October of 2002, Eaton and the OEMs entered into exclusive dealing contracts that were designed to foreclose Eaton’s competition in the market for Class 8 truck transmissions. The exclusive dealing contracts contained lucrative rebate and share penetration incentives for the OEMs that could only be achieved by diverting purchases of competitor transmissions to Eaton transmissions. These rebates and incentives were not shared or passed through to the truck purchasers.
The OEMs agreed to exclude Eaton’s competitor’s transmissions from their sales materials and/or penalize customers with higher prices or other punitive measures if those customers selected a competitor transmission over an Eaton transmission. The result of the agreements between Eaton and the OEMs was a harm to competition by limiting consumer choice, eliminating a competitive check on pricing, suppressing innovation and foreclosing an efficient and significant competitor from the market for Class 8 truck transmissions. As a result of the conspiracy between Eaton and the OEMs, the class of direct truck purchasers was forced to pay inflated prices for Class 8 truck transmissions.
To view a copy of the complaint, please click here.
*In August 2017, our firm name changed to Berman Tabacco. Case references and content published before that date may refer to the firm under our prior name, Berman DeValerio.