Lawsuits Filed Over Alleged Parasitic Pricing in Fire Truck Industry
What happened
Johnston and Grimes are joining Des Moines and dozens of other municipalities in a lawsuit against major fire truck providers. The defendants include allegations against REV Group and its affiliates, American Industrial Partners and its affiliates, Oshkosh Corporation, Pierce Manufacturing, and Boise Mobile Equipment. The suit claims these companies engaged in multi-year, anticompetitive schemes to consolidate markets for fire trucks and their replacement parts. Plaintiffs allege these practices resulted in substantial overcharges and reduced equipment value.
From kcci.com
Why it matters
The litigation challenges the market practices of major fire apparatus manufacturers. The suit alleges that the defendants systematically acquired industry competitors and key companies in the supply chain to lessen competition. These alleged practices are claimed to have allowed the defendants to reap extraordinary profits at the expense of fire departments and taxpayers.
The International Association of Fire Fighters is tracking market pricing and manufacturer accountability issues involving fire apparatus manufacturers.
From kcci.com
Who's involved
- JohnstonCity involved in the lawsuit regarding fire truck purchases
- Pierce ManufacturingFire truck manufacturer named as a defendant in the suit
- REV GroupFire truck manufacturer facing allegations of parasitic pricing
- American Industrial PartnersCompany accused of being involved in anticompetitive pricing schemes
- GrimesCity involved in the lawsuit regarding fire truck purchases
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The entities involved
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Johnston
city in Polk County, Iowa, United States
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Pierce Manufacturing
American manufacturer of fire trucks
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REV Group
company
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American Industrial Partners
company in New York, United States
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