A class action lawsuit has been filed alleging significant antitrust violations by a major infant formula manufacturer. The complaint, lodged by Thomas Conry, Kelsey Daker, Hailey Ronayne, and Robyn Sussman in the United States District Court for the Eastern District of Virginia on April 22, 2024, targets Gerber Products Company and Perrigo Company PLC, among others.
The plaintiffs accuse the defendants of engaging in anticompetitive conduct that violated federal and state antitrust laws. According to the complaint, Perrigo has maintained dominance in the U.S. market for store-brand infant formula through a series of unlawful agreements with Gerber. These agreements allegedly prevented competitors from entering the market, resulting in higher prices for consumers. The plaintiffs claim that Perrigo's monopoly was preserved through an agreement with Gerber that granted Perrigo first rights to Gerber’s excess manufacturing capacity. This arrangement purportedly blocked other potential competitors like P.-L. Developers, LLC (PLD) from entering the market.
The complaint details how PLD had negotiated a contract with Gerber to produce store-brand infant formula for seven years. However, when Gerber informed Perrigo about this contract, Perrigo exercised its first right under their anticompetitive agreement to acquire Gerber’s excess capacity instead. As a result, Gerber reneged on its contract with PLD, effectively preventing PLD from entering the market and maintaining Perrigo's monopoly.
Plaintiffs allege that this collusion between Gerber and Perrigo resulted in artificially inflated prices for store-brand infant formula sold through major retailers such as Walmart and Walgreens. They argue that consumers have been harmed by paying higher prices than they would have in a competitive market. The plaintiffs are seeking injunctive relief to prevent further anticompetitive practices, treble damages under federal and state laws, restitution for overpayments made by consumers, and other appropriate relief.
The case is being handled by attorneys Wyatt B. Durrette Jr., Kevin J. Funk of Durrette Arkema Gerson & Gill PC; Simon B. Paris and Patrick Howard of Saltz Mongeluzzi & Bendesky PC; Michael J. Boni and Joshua D. Snyder of Boni Zack & Snyder LLC; Jeffrey J. Corrigan and Jeffrey L. Spector of Spector Roseman & Kodroff PC; Roberta D. Liebenberg and Gerard A. Dever of Fine Kaplan & Black RPC.