City Attorney Files Antitrust Suit Against Fire Truck Manufacturers, Dealers Over Alleged Price-Fixing and Bid-Rigging Scheme

LOS ANGELES — City Attorney Hydee Feldstein Soto Sept. 15 announced a lawsuit against fire truck manufacturers, dealers, and a national trade association alleging a multi-year scheme to fix prices, rig bids, restrict supply and reduce competition in the fire apparatus industry. The suit alleges that this conduct increased costs for the City of Los Angeles and communities across California.

The lawsuit, brought by the City of Los Angeles and the People of the State of California, alleges that defendants transformed a competitive fire truck industry into a highly concentrated market. It further alleges that defendants used their market power to increase prices and extend delivery times for fire departments that depend on these vehicles to protect lives and property.

”Fire trucks are essential public safety tools that our firefighters depend on every day to protect the people of Los Angeles,” said Hydee Feldstein Soto, Los Angeles City Attorney. “We allege that these companies manipulated the market for this critical equipment, forcing Angelenos to pay more and fire departments to wait longer for the trucks they need. That is unacceptable. We are bringing this action to recover what Los Angeles taxpayers lost and to restore fair competition to this market.”

According to the complaint, prices for fire apparatus have doubled and, in some instances, tripled over the past decade, far outpacing inflation. Manufacturers also allegedly restricted supply even as demand increased, contributing to a nationwide shortage and forcing fire departments to wait longer for new vehicles.

The lawsuit also alleges that manufacturers and other defendants coordinated or colluded on prices, output and bids, including through the exchange of commercially sensitive pricing and sales information. According to the complaint, the Fire Apparatus Manufacturers’ Association maintained a database containing detailed transaction information supplied by its members, including specific prices, and distributed market information among competing manufacturers.

In addition to its antitrust and unfair competition claims, the City alleges violations of the California False Claims Act and breach of contract against certain companies that sold fire apparatus and repair parts directly to Los Angeles.

The City is seeking treble damages for losses caused by the alleged anticompetitive conduct, restitution, civil penalties and permanent injunctive relief to stop the alleged unlawful practices and restore competition in the fire apparatus industry. The City also seeks treble damages and civil penalties for alleged violations of the California False Claims Act.