HVAC Price-Fixing Antitrust Class Action

WHAT’S THE ISSUE?

Hagens Berman has filed a class-action lawsuit on behalf of consumers accusing seven of the nation’s leading HVAC manufacturers of conspiring to fix prices of HVAC equipment, including air conditioner condensers, heat pumps, furnaces, air handlers, rooftop units, split systems, chillers and variable refrigerant flow systems. The lawsuit names Bosch, Trane, Carrier, Daikin, Lennox, Rheem and AAON as defendants stating they fraudulently concealed their conspiracy that began in the onset of the COVID-19 pandemic, obscuring their unlawful anticompetitive behavior amid supply chain disruptions. The class action accuses defendants of secret meetings, information sharing and more to drive the price of HVAC equipment to “historic levels.”

HOW DO I KNOW IF I’M AFFECTED?

If you purchased HVAC equipment since Jan. 1, 2020, for use in a residential or commercial building, you may be affected. Products include air conditioner condensers, heat pumps, furnaces, air handlers, rooftop units, split systems, chillers and variable refrigerant flow systems. Fill out the form to find out your rights »

Major brand names listed in the complaint include:

• Bosch (including subsidiaries JC Residential and Light Commercial LLC and Johnson Control-Hitachi Air Conditioning North America LLC)
• Trane (including subsidiary Mitsubishi Electric Trane HVAC US)
• Carrier (including Viessmann Manufacturing Co.)
• Daikin (including ThermalNetics LLC)
• Lennox (including subsidiary Allied Air Enterprises LLC)
• Rheem (including its division Heat Transfer Products Group LLC) and
• AAON (including subsidiary BASX Inc.)

HVAC PRICE-FIXING ALLEGATIONS EXPLAINED

According to the lawsuit, HVAC manufacturers are guilty of exactly what the Department of Justice warned against amid price volatility and supply chain disruptions in 2020: they exploited the COVID-19 supply chain disruptions and regulatory transitions to fix prices and overcharge for HVAC equipment.

“Through a series of frequent and repeated secret meetings, information sharing, communications, and public signaling, Defendants drove the prices of HVAC Equipment to historic levels,” the lawsuit states, and “skyrocketed in just the last few years.”

If you believe you may be impacted by this lawsuit, fill out the form to find out your rights »

The following chart compares the Producer Price Index by Industry: Air-Conditioning, Refrigeration, and Forced Air Heating Equipment Manufacturing: Primary Products to the Consumer Price Index (CPI). The lawsuit states, “There is no doubt Defendants were incredibly disciplined, driving prices up to record levels from 2020 through the present, and far exceeding the CPI.”

HOW HVAC MANUFACTURERS FIXED PRICES

The alleged conspiracy relied on two key mechanisms:

First, the lawsuit states, defendants used the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), a trade association for the HVAC industry they largely control, to facilitate the sharing of information available only to AHRI members who also agreed to share their own data with their competitors.

Second, defendants allegedly used the industry publication Air Conditioning, Heating & Refrigeration (ACHR) News to announce price increases and provide commentary on their pricing and supply plans.

The 152-page complaint details specific announcements and shared information dating back to 2020, revealing a pattern in which competitor price increases took place in as little as two weeks, demonstrating defendants’ alleged conspiracy. Statements made by defendants include:

• “Based on everything we have seen so far, we see our competitors aiming at similar price increases.” – Lennox’s CEO Alok Maskara
• “I don’t want anyone to think that pricing is coming down in that market.” – Trane executive vice president and CFO, Chris Kuhn
• “[T]he industry’s generally been disciplined for the past several years … . [W]e’re gonna continue to increase our pricing to maintain our margins. I think others have generally been as well. You know, we, as an industry, have realized that, you know, pricing, you know, taking it away, does not win market share.” – Defendant Lennox’s CFO, Michael Quenzer

Together, defendants control 92 percent of the U.S. HVAC market, which was approximately $31.26 billion in 2024.

YOUR RIGHTS AS A CONSUMER OR SMALL BUSINESS

For most homeowners and small business owners, the purchase of an HVAC system is a necessity and, due to its already steep cost, is often financed through a loan. We believe the HVAC market has been co-opted by powerful companies who sought to illegally manipulate the playing field to extract maximum profits from purchasers.

The lawsuit brings claims of federal antitrust violation for indirect purchasers and seeks to bring monetary relief to HVAC purchasers who may have unknowingly overpaid. Defendants also allegedly violated state consumer protection laws, including those dictating unfair or deceptive trade practices, consumer fraud, unfair competition and restraint of trade. Additionally, the lawsuit seeks injunctive relief to permanently end the alleged price-fixing conspiracy.

HOW CAN A CLASS-ACTION LAWSUIT HELP?

Through a class-action lawsuit, individual consumers can collectively bring claims against large corporations that would otherwise have the upper hand, like the few powerful companies dominating the U.S. HVAC market. A class-action lawsuit seeks to level the playing field, bringing strength through collective action to demand meaningful, lasting reform. Though these measures do not bring immediate relief, they are a time-tested method of holding companies accountable for wrongdoing, including companies’ anticompetitive practices.