Walmart (NYSE:WMT) and Energizer Holdings (NYSE:ENR) are facing class action lawsuits over a deal that kept disposable battery prices high.
A U.S. district judge in California ruled against the two companies over the validity of the three proposed classes lawsuits. Plaintiffs allege that, in violation of Section 1 of the Sherman Act, Walmart (WMT) Energizer under pressure (ENR) to inflate wholesale battery prices to get preferential treatment at stores and to force Energizer (ENR) to undercut other retailers who were selling batteries cheaper than Walmart (WMT). The agreement between the two dates back to 2018.
Because of the deal between Walmart (WMT) and Energizer (ENR), plaintiffs alleged that disposable battery prices were kept artificially high.
Lawyers for Walmart (WMT) and Energizer (ENR) argue that the agreement between the two companies did not violate antitrust laws: “the companies are free to choose the parties with which they deal, as well as the prices, terms and conditions of the contract”. .”
Following the ruling, Walmart (WMT) and Energizer (ENR) may now face lawsuits from consumers and retailers.