Infotech Consulting had the opportunity to work with indirect purchaser plaintiffs in an industry that most people never even think about when turning on their faucets. Ductile iron pipe fittings (DIPF) are used to join ductile iron pipe, valves and hydrants within a water system as well as change or direct the flow of water and are an integral part of municipal and regional water and sewer systems. The end-user plaintiffs, including municipal water works departments, accused Defendants McWane, Inc, Sigma Corporation and Star Pipe Products of violating antitrust laws by restricting trade, charging supracompetitive prices for ductile iron pipe fittings, and unlawful monopolization between 2008 and 2014. These companies controlled over 90% of the DIPF market during this period. Infotech Consulting analyzed over 4.7 million DIPF distributor transactions to calculate the pass through rate to indirect purchasers that then was used to estimate the damages incurred by the end-users as a result of the conspiratorial behavior. Dr. Jim McClave’s damage model helped the plaintiff’s secure settlements totalling over $4 million.
In Re Ductile Iron Pipe Fittings (“DIPF”) Indirect Purchaser Antitrust Litigation, Civ. No. 12-169 (US District Court for New Jersey)
Originally published in 2018