Marine Products Antitrust Litigations

Labaton Sucharow serves as lead counsel in two class actions filed on behalf of persons and entities (including state governmental entities) that purchased foam-filled fenders and buoys and marine pilings directly from defendants. The actions, filed on March 17, 2011, are pending before the Honorable George H. Wu in the Central District of California.

In Ace Marine Rigging & Supply, Inc. v.Virginia Harbor Services, et al., the Complaint alleges that defendants and their co-conspirators, the leading manufacturers and distributors of foam-filled fenders and buoys, conspired to fix prices, rig bids and allocate customers and markets of these products from at least June 1, 2000 through such time as the anticompetitive effects of the defendants' conduct ceased. Labaton Sucharow has secured four partial settlement with 10 defendants on behalf of plaintiff and the class: (1) Virginia Harbor Services, Inc., Fentek Marine Systems GmbH, Robert B. Taylor and Donald Murray ($3.1 million); (2) Marine International, Inc. and John Deats ($50,000); (3) Waterman Supply Co., Inc. and Seymour Waterman ($40,000); and (4) Marine Fenders International and Gerald Thermos (for extensive cooperation), resulting in a total of $3.19 million. The case continues against remaining defendants.

In Board of Trustees of Commissioners of the Port of New Orleans v. Virginia Harbor Services, et al., the Complaint alleges that defendants and their co-conspirators, the leading manufacturers of marine pilings, conspired to fix prices, rig bids and allocate customers and markets of these products from at least January 1, 2000 through such time as the anticompetitive effects of the defendants' conduct ceased. Labaton Sucharow has secured two partial settlements with four defendants on behalf of plaintiff and the class: (1) Virginia Harbor Services, Inc., Robert B. Taylor and William Alan Potts ($1.85 million); and (2) Gerald Thermos (for extensive cooperation). The case continues against remaining defendants.

Pursuant to a related criminal investigation launched by the U.S. Department of Justice's Antitrust Division, certain defendants have pleaded guilty to engaging in a conspiracy to unlawfully rig bids and allocate markets for the sale of foam-filled fenders and buoys and/or marine pilings in the United States. These guilty pleas have resulted in substantial criminal fines and/or jail sentences. Additionally, pursuant to the False Claims Act, the Department of Justice intervened and settled claims in a related qui tam lawsuit brought by a whistleblower. The State of Florida also settled similar claims pursuant to its investigation into the marine products industry.