Wisconsin City Alleges Makers of Fire Apparatus Conspired to Fix Prices

Wisconsin City Alleges Makers of Fire Apparatus Conspired to Fix Prices

La Crosse, WI – August 21, 2025 – The city of La Crosse, Wisconsin, has filed a federal lawsuit accusing major fire truck manufacturers and their trade association of conspiring to fix prices and suppress production, leading to skyrocketing costs and delivery delays that threaten public safety. The class-action lawsuit, filed on August 20, 2025, in the U.S. District Court for the Eastern District of Wisconsin, targets REV Group, Inc., Oshkosh Corporation, Rosenbauer America LLC, and the Fire Apparatus Manufacturers’ Association (FAMA), alleging violations of federal antitrust laws.

According to the complaint, the manufacturers, which control 70-80% of the U.S. fire truck market, colluded through FAMA to exchange sensitive pricing data, coordinate price increases, and artificially limit production. This alleged conspiracy has caused fire truck prices to double over the past decade—outpacing inflation—with the average engine truck now costing over $1 million, up from $300,000-$500,000 in the mid-2010s, and ladder trucks reaching $2 million. Delivery wait times have also ballooned from 18 months to over four years, leaving fire departments reliant on outdated equipment.

“Thanks to their conspiracy, manufacturer defendants have been able to increase their margins by several percentage points and boost total profits, all without concern that their competitors will try to steal market share,” the lawsuit states. La Crosse seeks damages exceeding $5 million, alleging it significantly overpaid for fire apparatus due to the scheme. The complaint further claims that manufacturers imposed “floating prices,” retroactively increasing costs after orders were placed, exploiting widespread production backlogs.

The lawsuit follows concerns raised by the International Association of Fire Fighters (IAFF) and the American Economic Liberties Project (AELP), who, in May 2025, urged the Department of Justice (DOJ) and Federal Trade Commission (FTC) to investigate the same manufacturers for antitrust violations. The IAFF highlighted a $4.2 billion backlog at REV Group in 2024, despite no significant investments to increase production capacity, suggesting deliberate supply constraints. “Consolidation among fire apparatus manufacturers, largely controlled by private equity profiteers, is driving up costs and delays of critical vehicles,” IAFF General President Edward Kelly stated.

The lawsuit also points to FAMA’s role in facilitating the alleged conspiracy by collecting competitive economic data from manufacturers, compiling it through a third-party consultant, and distributing reports that enabled coordinated pricing. FAMA’s annual meetings allegedly provided a forum for manufacturers to further align their strategies.

Attorneys from Hagens Berman and Crueger Dickinson LLC, who initiated the case independently of prior government probes, emphasized the impact on municipalities and fire departments nationwide. “Communities deserve better than to be price-gouged for life-saving equipment,” said Steve Berman, managing partner at Hagens Berman. The lawsuit seeks to represent a class of affected municipalities and fire departments, alleging that thousands of communities have been harmed by inflated costs and delays.

The manufacturers have defended their practices, attributing price increases and delays to supply chain disruptions from the COVID-19 pandemic. However, the complaint counters that backlogs predated the pandemic, with REV Group reporting a $1 billion backlog before 2020. Defendants have not yet publicly responded to the lawsuit, but industry analysts expect a vigorous defense, given the significant market share at stake.

The case has drawn broader attention, with Senators Jim Banks (R-IN) and Elizabeth Warren (D-MA) launching a bipartisan investigation in April 2025 into private equity’s role in fire truck manufacturing, citing concerns over price hikes and delays. “Long delays and rising costs in securing critical equipment put communities at risk,” said Carmel, Indiana, Mayor Sue Finkam, whose city faced a 10% price increase for a pumper truck in 2024 and wait times exceeding four years.

Legal experts anticipate the lawsuit could set a precedent for antitrust enforcement in specialized industries. “This case highlights how consolidation can lead to market abuses, especially in sectors critical to public safety,” said antitrust lawyer Basel Musharbash. As the litigation proceeds, it may prompt further scrutiny of fire apparatus manufacturing and its impact on first responders and communities nationwide.

Sources: Law.com, Bloomberg Law, Global Competition Review, IAFF, Hagens Berman, MLex, Senator Jim Banks