• First Circuit Court Rejects Price Gouging and Price Fixing Claims Against Service Stations Following Hurricanes Katrina and Rita
  • April 1, 2011
  • Law Firm: Shipman Goodwin LLP - Hartford Office
  • Residents of Martha’s Vineyard complained that the prices set by operators at four of the island’s gas stations were artificially high due to an illegal price-fixing conspiracy and price gouging in the aftermath of Hurricanes Katrina and Rita. The defendants’ prices exceeded prices at gas stations on Cape Cod by an average of 56 cents per gallon, only 21 cents of which were attributable to higher transportation costs. The plaintiffs sued under Section 1 of the Sherman Act and the price-gouging regulation under Massachusetts’ unfair trade practices law, G.L. ch. 93A § 2(a). The First Circuit affirmed a grant of summary judgment to the defendants on both claims.