Dive Summary:
- Hershey, Mars and Nestle, together making up more than 75% of the chocolate market in the U.S., have been accused of fixing artificially high prices for both regular and king size chocolate bars.
- The accusation comes in the form of a class action lawsuit requesting damages of $727 million, a number agreed upon based on an estimated 8% artificial price increase.
- The companies responded, calling into question the validity of the suit and whether the plaintiff's could be considered a 'class,' however the judge, satisfied with both the dollar amount and the 'class' status, permitted the case to be heard.
From the article:
The companies are to face allegations of price fixing after a judge in a district court in Pennsylvania ruled on 7 December that 91 claimants could lodge a class action against the chocolate giants. The claimants had relied on expert evidence to prove they were a 'class' a group with a similar gripe which the chocolate makers claimed was based on miscalculations.
