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Lawsuit claims ‘cartel’ of big US equipment rental firms inflated rates for years

©GCR, illustration by Denis Carrier
US law firm Berger Montague has filed a class action antitrust lawsuit in Chicago district court against an alleged “cartel” of some of the country’s biggest construction equipment rental companies, which the law firm alleges has artificially inflated equipment rental rates for years.

Berger Montague and co-counsel Edelson and Hausfeld allege that companies including United Rentals, Sunbelt Rentals, HERC, H&E Equipment and Sunstate Equipment were acting with market intelligence firm Rouse Services to share sensitive internal data to set supracompetitive pricing, which the lawsuit claims violates the Sherman Act, 15 U.S.C. § 1.

The complaint dubs the company the “Rouse Cartel” and alleges that the five companies shared an “electronic, real-time, common insights price for use by rental company members only”, with price setting “widely recognised and followed within the industry”.

The complaint alleged that this discouraged price competition among Rouse Services’ rental company clients, and encouraged “steady, coordinated upward pressure on rental prices”.

If the claim is found to be true, it would mean the defendants have for years increased the prices of equipment, including dozers, excavators, hoes, cranes and loaders.

The lawsuit also alleges that since 2011, the alleged cartel’s collective market share grew from 25% to a majority.

Zachary Caplan, Berger Montague shareholder, said: “We are determined to fight back against these anticompetitive practices and ensure a fairer market for all.”

Natasha Fernández-Silber, Edelson partner, said: “We believe we’ll be able to prove to a jury that these companies are taking money out of the pockets of hardworking Americans by artificially driving up prices across the country.”

The suit pursues damages and relief for those affected.

The class action lawsuit is available to read here.

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