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Federal Antitrust Lawsuit Filed By Coal Mines Against Railroad

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A federal antitrust lawsuit filed by coal and petroleum coke mines alleges that Union Pacific and BNSF Railways profited from deregulation laws by price fixing freight prices for coal which had “broad adverse effects on the national economy,” and is driving up electrical bills for consumers across the country.

In the lawsuit Oxbow Mining said that  “Between July 2003 and June 2007, the defendants increased their market capitalization from approximately $40 billion to approximately $105 billion, or an increase of about 160 percent.”

According to the lawsuit, the railroads have “abused the freedoms granted them by deregulation in a number of ways.” One way, is by price-gouging a fuel surcharge and  “that surcharge yielded enormous revenues to the Railroads, far in excess of the actual costs for fuel incurred by the Railroads. UP boasted to its shareholders that its revenues from this surcharge were over $1 billion in 2005.”

The lawsuit also claims that   “As a result of defendants’ anticompetitive conduct, the defendants received increased profits that were not attributable to any changes in their costs. In fact, by 2008, UP’s average revenue per carload had 54.5 percent over what it was in 2004; and its overall revenues for coal shipments from Colorado/Utah increased [by] over $300 million during that period,”

In the lawsuit, Oxbow and its entities are seeking treble damages for violations of the Sherman Act.

breakinglawsuitnews.com disclaimer: This article: Federal Antitrust Lawsuit Filed By Coal Mines Against Railroad was posted on Friday, June 10th, 2011 at 8:51 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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