ATLANTA, March 5, 2003 (PRIMEZONE) -- The Wilson Insulation Group, Inc. filed a lawsuit today against Masco Corporation (NYSE:MAS) for predatory pricing and monopolization. Wilson, which is based in the Atlanta area, and an affiliated company alleged in the lawsuit that Masco engaged in a concerted campaign to take control of a local market for insulation contracting. According to the allegations in the complaint, a senior executive from Masco stated that Masco intended to drive Wilson out of the Augusta, Georgia market and send a message to the industry. The suit was filed in United States District Court in Atlanta and asks for treble damages and costs under the federal claims and punitive damages under the state claims.
The complaint alleges that Masco sought to oust Wilson, its only significant rival in the Augusta market, by cutting off sources of supply and charging prices below its own costs. Masco allegedly threatened one major manufacturer that Masco would pull all of its business in one large state if the manufacturer continued to deal with Wilson in Augusta. Less than one year after entering the market, Wilson had to close operations in Augusta. In the subsequent two years, Masco has allegedly raised prices in Augusta by 80% to 100%.
Wilson declined to comment and referred all questions to its attorney, Jeffrey L. Berhold. Mr. Berhold said that the company suspected that Masco had taken similar actions in various markets around the country. He added that the company looked forward to presenting its evidence and making its case in the courtroom. The U.S. Department of Justice has informed the company that it is separately investigating the allegations as well.