CASE BACKGROUND
This suit’s class action complaint alleges that leading HVAC equipment manufacturers and related entities conspired to fix, raise, maintain, and stabilize prices for HVAC equipment sold in the United States beginning at least as early as January 1, 2020. Plaintiff and members of the proposed Class are individuals and entities who purchased HVAC equipment directly from defendants, which include Bosch, Trane, Carrier, Daikin, Lennox, Rheem, and AAON corporate families. These defendants allegedly account for over 90% of the U.S. market for the HVAC equipment at issue.
HVAC equipment consists of appliances used in residential and commercial ducted heating, ventilation, and cooling systems. Covered products generally include air conditioner condensers, heat pumps, furnaces, air handlers, rooftop units, split systems, chillers, and variable refrigerant flow systems. According to the complaint, HVAC equipment manufacturing is highly regulated and standardized, resulting in limited product differentiation. It further alleges demand for HVAC equipment is relatively stable due to its frequency of use in residential and commercial properties and its life cycle, which necessitates periodic maintenance and replacement.
HVAC equipment is essential and expensive. The suit claims that prices rose sharply beginning in 2020—the year that defendants’ alleged price-fixing conspiracy began. At that time, defendants allegedly shifted from competing on price to moving in lockstep, using public earnings calls and other public statements to signal “disciplined” pricing and a shared commitment not to compete by lowering prices.
Behind the scenes, defendants allegedly used industry meetings, trade-association channels, information sharing, and public signaling, to drive prices to historic levels. In fact, according to the suit, during the Class period, the Air-Conditioning, Refrigeration, and Forced Air Heating Equipment Manufacturing Producer Price Index rose faster than both the Consumer Price Index and the Major Household Appliance Manufacturing Producer Price Index.
