SANTA ANA, Calif. — South Korean automakers Hyundai and Kia are suing the four largest U.S. Class I railroads, saying the railroads are violating U.S. antitrust law with coordinated fuel surcharges that drive up shipping costs.
Reuters reports that the companies filed the suits Tuesday in federal court in Santa Ana, near their U.S. headquarters in Fountain Valley, Calif., and Irvine, Calif., respectively. They are suing BNSF Railway, Norfolk Southern, CSX Transportation, and Union Pacific for imposing the surcharges between July 2003 and December 2008. The suits cite meetings, phone calls and emails to claim that the railroads conspired to impose the surcharges that generated billions of dollars in profit at customers’ expense.
The suits seek triple damages.
