On July 23, 2010 a district court in Delaware appointed Cohen Milstein Sellers & Toll PLLC to serve as co-lead counsel in a class action on behalf of purchasers of Truck Transmissions for Heavy Duty trucks (also known as Class 8 Truck Transmissions), Mark S. Wallach v. Eaton, Inc., No. 10-cv-260 (D. Del.). The law firm of Berman DeValerio will serve alongside Cohen Milstein as co-lead counsel. Additionally, Rosenthal, Monhait, Gross & Goddess, P.A. will serve as liaison counsel and the firms Taus Cebulash & Landau LLP and Faruqi & Faruqi, LLP will serve as members of the executive committee.
The complaint alleges that in the early 2000s the four major manufacturers of heavy duty trucks—Freightliner, Volvo/Mack, International, and PACCAR—faced ever sinking profits as a result of a general economic downturn. At this same time, Eaton, Inc, the largest manufacturer of Class 8 Trucks Transmissions, saw its market share begin to dwindle as a result of a new market entrant, ZF Meritor, competing for business in the market for Class 8 Truck Transmissions.
In response, Plaintiffs allege, Eaton and the truck manufacturers conspired to eliminate Eaton’s only competitor, ZF Meritor, so that all five defendants could share in Eaton’s monopoly profits. Defendants’ conspiracy was memorialized in a series of exclusive dealing arrangements in which the truck manufacturers promised to take various steps to eliminate ZF Meritor as a provider of Class 8 Truck Transmissions in exchange for millions of dollars in monopoly rents, characterized as “rebates” in the agreements.
Once Eaton’s only competitor had been driven from the market, the complaint contends, Eaton charged supracompetitive prices for Class 8 Truck Transmissions. As a direct result of Defendants’ conspiracy, purchasers of Class 8 Truck Transmissions paid supracompetitive prices for these transmissions.