Guitar Center, Fender, NAMM Sued Again
Another class-action lawsuit, this one filed by lead plaintiff Walter Witherspoon, d.b.a. Racy Brothers Enterprizes and Lil Walt Production, accuses Guitar Center, Fender, and NAMM of engaging in a “conspiracy to inflate and fix the prices of musical products.”
As with the class-action lawsuit filed on Sept. 11, this lawsuit, filed Oct. 2, refers to the Federal Trade Commission (FTC) allegations put forth against the music instruments industry. NAMM settled with the FTC earlier this year. The FTC settlement does not admit any NAMM wrongdoing.
This lawsuit is different in that it accuses more defendants than the three we previously mentioned. Also accused of wrongdoing and named as defendants were Peavey, Roland, Gibson, Bain Capital, C.F. Martin, Korg, Yamaha, TASCAM, and TEAC. According to the suit, the defendants “exchanged sensitive price information for musical products and agreed to adhere to minimum advertised pricing or minimum resale price maintenance agreements, which led to increased prices for consumers across the country.”
This lawsuit is also different because it claims Guitar Center was involved in a “coordinated and collusive effort with manufacturers beginning in approximately 2001.” In addition, this lawsuit does not claim NAMM directly participated in any collusive efforts. However, the wrongdoings might have been discussed at NAMM shows. According to the lawsuit, “NAMM became the perfect conduit in which MAP pricing could be discussed…Defendants engaged in illegal behavior at NAMM and outside of the trade show.”
As for allegations against Guitar Center, the lawsuit states: “Guitar Center frequently demanded and received preferential and discriminatory benefits, promotional allowances, financial incentives, discounts, pricing, and other favorable terms from the defendant manufacturers with respect to musical instruments and equipment sold at its retail stores or through its online companies and its catalogues….Guitar Center threatened retaliation if defendant manufacturers did not cooperate with Guitar Center.”
The lawsuit defines the suing class as million of people. The suit seeks compensatory, actual, treble, and punitive damages, as well as an injunction preventing any future alleged “intentional and malicious conduct.”
The plaintiffs are represented by Barnow and Associates, P.C., Roberts Law Firm, and Harke & Clasby LLP.
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