A federal appeals court on Wednesday revived antitrust claims against C&S Wholesale Grocers Inc and SuperValu Inc alleging that they engaged in a transaction to artificially raise the prices of groceries.
A three-judge panel for the 8th U.S. Circuit Court of Appeals sitting in St. Paul, Minnesota, reversed a lower court's decision that had dismissed claims brought by five retail grocers. It represents a setback for the wholesalers.
At issue is a 2003 agreement between SuperValu and C&S to exchange assets in the Midwest and New England and not to compete with each other for customers served by the operations involved in the swap.
Five retail grocers, including King Cole Foods Inc and Blue Goose Super Market Inc, brought class action antitrust claims against either one of the two wholesalers. The claims were made as part of an ongoing lawsuit that claimed the deal between SuperValu and C&S allowed the wholesalers to overcharge retail customers in the Midwest and New England.
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