KPH Healthcare Services, based in New York, has filed a lawsuit in federal court in Manhattan, accusing several companies, including Domino's owner, ASR Group, Michigan Sugar, and United, of artificially inflating prices for granulated sugar. This may have led to an increase in the cost of sugar in the market, which is estimated at over $13 billion, according to Reuters.
KPH, a company specializing in pharmaceuticals and healthcare, alleges that these companies violate antitrust laws by exchanging confidential information on prices, sales volumes, and other metrics. In their opinion, such behavior distorted prices and reduced competition.
ASR Group stated that the lawsuit is unfounded and they plan to vigorously challenge it. Michigan Sugar and United Sugar have not commented on the situation yet.
The lawsuit suggests that the alleged conspiracy affected food and beverage manufacturers, retailers, and catering companies. The lawsuit seeks compensation, the amount of which was not disclosed, as well as a ban on anticompetitive behavior.
The US Department of Justice already filed a lawsuit in 2021 to block Imperial's competitor from acquiring United Sugar, citing that it would lead to higher sugar prices. The $315 million deal was rejected by the court.
KPH's lawsuit points out that the merger of United Sugar made the market even more concentrated in the hands of a few companies.
