Truck Stop Antitrust Class Action Lawsuits Against Comdata
Introduction: Comdata Lawsuits Filed
Marchbanks Truck Service, Inc. and Universal Delaware, Inc. filed a class
action lawsuits against Comdata, owner of the monopoly credit card system
used by practically every truck stop in the United States.
The lawsuits charge that Comdata has harmed competition by using its market
dominance to impair the ability of rival card issuers to challenge Comdata's
monopoly, resulting in independent truck stops having to pay millions of
dollars in excessive fees. The suit was filed on behalf of a proposed class
of all independent truck stops.
Background on Comdata's Operation
Comdata is based in Brentwood, Tennessee and is a subsidiary of Minneapolis-based
Ceridian Corporation. The suit alleges
that in the mid-1990s Comdata acquired its chief truck stop card rival
(NTS) and the monopoly point of sale system (Trendar). After becoming a
monopolist in the truck stop card and point of sale system markets, Comdata
changed its pricing system and significantly increased card fees paid by
independent truck stops relative to fees charged to the chain truck stops.
Plaintiffs' Factual Allegations
Chain truck stops (such as Pilot, Petro, and Travel Centers of America)
typically pay one dollar or less per transaction. Independent truck stops pay
a percentage of the value of the transactions, typically over 2%. Given
that the vast majority of affected transactions, which usually involve
truckers buying large quantities of diesel fuel, are far in excess of $25,
the card fee independents pay is almost always significantly greater than
the fee chain truck stops pay. Plaintiffs allege that the difference
in charges costs independent truck stops millions of dollars annually,
impedes competition by independent truck stops and ultimately leads to
all consumers paying more.
Relief Sought
The lawsuit seeks treble damages for the overcharges to the plaintiffs
and the proposed class of independent truck stops, and an injunction to
prevent the ongoing anticompetitive conduct.
Contact Plaintiffs' Counsel
Truck stop owners who wish to report their experiences with Comdata or
to learn more about the litigation are welcome to contact plaintiffs' counsel
by clicking here.
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