Another Steel Giant Brings Surcharge Case Against Railways

Law360 (December 4, 2019, 3:45 PM EST) -- Global steel producer Gerdau on Tuesday launched its own suit claiming major U.S. railways fleeced freight companies out of millions with a fuel surcharge conspiracy, after the D.C. Circuit unanimously shut down shippers’ class certification bid in long-running multidistrict litigation over the same claims.

The circuit court rejected rail shippers’ certification bid in the main case in August, prompting Gerdau Ameristeel Corp. and several subsidiaries to sue Union Pacific Railroad Co., BNSF Railway Co., CSX Transportation Inc. and Norfolk Southern Railway Co. in D.C. federal court this week.

Gerdau claims the railways cut an anti-competitive deal in 2003 to roll out...

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