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Washington Report
July 2005
Antitrust suits target Big 3, casket companies
by ICFA General Counsel Robert M. Fells, Esq.
As widely reported in the national news media in early May, Funeral Consumer Alliance, a consumer advocacy group, together with several individuals, filed a private antitrust lawsuit in a northern California federal district court against Service Corporation International, Alderwoods, Stewart Enterprises and Hillenbrand Industries/Batesville Casket Co.
The litigation seeks standing as a class action on behalf of consumers throughout the United States who were allegedly overcharged for caskets during the last four years. Plaintiffs claim that defendants violated federal and state antitrust laws through alleged price- fixing agreements and group boycotts and by engaging in an alleged conspiracy to monopolize the casket market to the detriment of consumers and independent casket dealers.
The complaint also identifies alleged "co-conspirators" that have not thus far been named as defendants in the litigation, including Aurora Casket Co., The York Group and the National Funeral Directors Association. The complaint's only reference to the ICFA was to note its open competition policy, stating that the ICFA criticizes state laws that limit casket sales exclusively to licensed funeral directors.
Plaintiffs seek a permanent injunction to restrain alleged illegal conduct, and treble damages plus interest as compensation for overcharges, among other forms of relief. Typically, antitrust litigation of this scope proceeds slowly over a long period with a number of procedural challenges to be decided by the court prior to focusing on the issues. Such challenges include whether the plaintiffs have standing to sue and whether the complaint should be dismissed for a failure to state a claim upon which relief can be granted.
A second private antitrust lawsuit involving similar issues was subsequently filed in a Tennessee federal district court by different plaintiffs, listed as, "Ralph L. Fancher on Behalf of Himself and All Others Similarly Situated." The defendants were the same as those named in the California litigation, with the addition of the York Group Inc. and Aurora Casket Co.
Copyright ICFA 2005
Decision in favor of cemetery stands
Positive IRS ruling
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