April 23 (Reuters) – Infant formula makers Gerber and Perrigo have been hit with a proposed class-action lawsuit accusing them of scheming to artificially drive up prices for “store-brand” formula sold at Walmart, Walgreens and other retailers.
The lawsuit, opens new tab, filed Monday in Alexandria, Virginia, federal court, said Perrigo violated antitrust law by illegally agreeing with Gerber to block competitors from cutting into the market for store-brand formula.
Perrigo is the country’s top supplier of store-brand formula, which is sold under retailers’ labels and can cost less than similar branded products. Gerber, according to the lawsuit, agreed to give Perrigo “first right of refusal” to Gerber’s excess formula supply, which a competitor otherwise might have used to sell to retailers.
The plaintiffs are four residents of California, Illinois, Michigan and Pennsylvania who said they had purchased store-brand baby formula and who seek to represent a class of millions of customers.