Sweetnam LLC Blog

Thursday, July 12, 2012

Railroads Seek Appeal of Class Certification in Fuel Surcharge Antitrust Class Action

Union Pacific Corp. (UNP), the largest U.S. carrier, CSX Corp. (CSX); the third largest, Norfolk Southern Corp. (NSC); and Burlington Northern Santa Fe, a unit of Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), recently sought appeal to United States Court of Appeals for District of Columbia Circuit from a district court's class certification order in a case alleging that the railroads colluded to artificially inflate railroad shipping fuel surcharges in violation of the antitrust laws.  The lawsuit, brought in 2007 by Olin Corp. and seven other companies that ship goods by rail, alleges the railroad companies colluded at an industry meeting in 2003 to impose a surcharge tied to overall transportation costs rather than to actual fuel prices over a 3-1/2-year period.  Read more.

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