On May 8, 2013, U.S. District Court Judge Michael Baylson, of the Eastern District of Pennsylvania, named SRKW as Co-Lead Counsel for direct purchaser plaintiffs in In re Domestic Drywall Antitrust Litigation, a nation-wide, price-fixing class action against numerous, large producers of drywall. Drywall, also known as gypsum board, wallboard, sheetrock or plasterboard, is used in over 90 percent of all new residential and commercial construction projects in the United States.

Judge Baylson had previously appointed SRKW as interim Co-Lead Counsel for direct purchaser plaintiffs claiming that drywall manufacturers engaged in an unlawful conspiracy to fix, raise, maintain and/or stabilize prices. The case alleges that in the fall of 2011, the defendants (including CertainTeed Corp., USG Corporation, United States Gypsum Company, New NGC, Inc., Lafarge North America, Inc., Georgia-Pacific LLC, American Gypsum Company LLC, TIN, Inc. d/b/a Temple-Inland, Inc., and PABCO Building Products, LLC) conspired to implement unprecedented 35% price increases for drywall in January 2012 and further large increases in 2013. The case further contends that the defendants also conspired to abolish the industry’s long-standing practice of limiting price increases for the duration of a construction project through the use of “job quotes,” which helped pave the way for the collusive price increases.

As a result of the alleged conspiracy, direct purchasers of drywall paid inflated prices to the defendants. The defendants have over $5 billion of sales in drywall per year, and account for over 99% of drywall sales in the U.S. Thus, the impact of the defendants’ conspiracy is substantial and likely runs to hundreds of millions of dollars.

A copy of the Complaint, which alleges violations of the federal antitrust laws, can be found here. If you purchased any drywall directly from a defendant between Jan. 1, 2012, and the present, you may have overpaid because of the alleged price-fixing scheme. For further information, or if you want to discuss your legal rights in the class-action lawsuit, please contact SRKW partners Eugene Spector or Jeff Corrigan.