A New York auto glass distributor has filed suit against two other auto glass distributors and several manufacturers alleging they have conspired against the company and boycotted it in an attempt to eliminate it from the market. O.E.M. Glass Network Inc. and Brooklyn Wholesale Glass Inc. (known together as OEMGN) filed the suit against Mygrant Glass Company Inc., Interstate Glass of Amityville NY LLC, Metro Glass Distributing Inc., Xinyi Auto Glass North America Corp., Vitro S.A.B. de C.V., Vitro Automotive Glass LLC, Fuyao Glass America Inc., Auto Temp Inc. and Sika Corp. on February 6 in the U.S. District Court for the Eastern District of New York.
The plaintiff alleges Mygrant and Interstate, specifically, “abused their market heft to convince OEMGN’s suppliers, the manufacturer defendants, to agree to cut off product sales to OEMGN, refuse further dealings with it, and take measures to preclude OEMGN from obtaining these manufacturers’ products through alternative channels.”
In the suit OEMGN says it “offer[s] retailers competitively low prices, particularly on more expensive aftermarket auto glass products.”
“This ultimately results in lower prices to consumers,” writes the company. “It also presents a disruptive threat to entrenched wholesalers like Mygrant, which is the largest independent aftermarket auto glass wholesaler in the nation, and Interstate.”
The company goes on to allege that “to suppress the competitive threat posed by OEMGN, defendants have conspired to put it out of business.”
“Mygrant and Interstate have vowed to discontinue purchasing from auto glass and urethane manufacturers that continue to deal with OEMGN,” writes OEMGN in the complaint. “Because Mygrant and Interstate’s combined multi-million-dollar purchases far exceed OEMGN’s purchases, each manufacturer defendant has agreed to join the conspiracy.”
The company further alleges it “has been unable to purchase the aftermarket auto glass products needed to maintain a sufficiently voluminous and diverse stock to compete viably,” due to the defendants’ alleged actions.
The plaintiff says it learned about the alleged conspiracy from the manufacturer defendants, who OEMGN say “have repeatedly told OEMGN, point blank, that they would no longer sell products to OEMGN due to the pressure exerted by Mygrant and Interstate.”
OEMGN opened in late 2013, according to the complaint, and says its competitors (Interstate in particular) have described it as a “price-cutter.” The company alleges Mygrant and Interstate “planted the roots of their scheme in or about the end of 2013 and have continuously enforced and expanded it to the present date.”
The company alleges each of the manufacturers have stopped selling auto glass parts and urethane to it over time, and that various officials have claimed that it was at the behest of Mygrant and Interstate officials.
OEGMN are seeking “damages, in an amount to be proven at trial, to be trebled according to law, plus interest—including prejudgment interest,” along with attorneys’ fees and the cost of the suit. OEGMN is represented by David Scupp and Daniel Vitelli of Constantine Cannon in New York.
At press time, the defendants had not yet responded to the suit.
To read the complaint, click here.