(Reuters) – Oshkosh and two other fire truck manufacturers are facing a growing number of lawsuits alleging they took part in a nationwide price-fixing scheme that caused local and municipal fire departments to pay inflated prices for emergency vehicles.
Newstead Fire Company, based in western New York, lodged the latest case on Friday in federal court in Wisconsin, where two other proposed class actions are already pending.
The first of the cases was filed in August by the City of La Crosse, Wisconsin. Augusta, Maine, also has sued Oshkosh and others, including REV Group Rosenbauer America and Oshkosh subsidiary Pierce Manufacturing.
A judge on Friday paused the litigation for 60 days to allow coordination among the various plaintiffs. Additional lawsuits are expected, according to court filings.
Oshkosh, REV Group and Rosenbauer America in separate statements called the allegations in the lawsuits meritless. Oshkosh also said it was continuing to reinvest in U.S. operations to meet what it called record demand.
The Fire Apparatus Manufacturers’ Association, which is also a defendant, did not immediately respond to a request for comment.
The lawsuits allege that since at least 2016, the companies violated antitrust law by coordinating with the manufacturers’ association to exchange sensitive economic data, limit production and raise prices.
The plaintiffs said in the cases that fire truck prices have doubled over the past decade, with average pumper trucks now costing $1 million and ladder trucks topping $2 million.
Municipalities, according to the lawsuits, have been forced to keep aging trucks in service longer, risking public safety and straining budgets.
The three lawsuits seek triple damages and a court order to halt the alleged antitrust violations.
In April, Republican Senator Jim Banks of Indiana and Democratic Senator Elizabeth Warren of Massachusetts said consolidation in the fire truck market led by private equity firms has driven up costs and contributed to a nationwide shortage.
The senators pointed to a series of acquisitions of independent fire truck makers by private equity firm American Industrial Partners beginning in 2006. The firm, which is not a defendant in the lawsuits, had no immediate comment.
In May, the largest firefighters’ labor union in the United States urged antitrust authorities at the U.S. Justice Department and Federal Trade Commission to investigate consolidation in the industry.
The trade agency and Justice Department didn’t immediately respond to requests for comment.
Reporting by Mike Scarcella
