South Korea's Hyundai Motor Co. and Kia Motors Corp. have sued four U.S. railroad companies over price-fixing allegations.
Berkshire Hathaway Inc.-owned BNSF Railway Co., CSX Transportation Inc., Norfolk Southern Corp.'s Norfolk Southern Railway Co., and Union Pacific Corp.'s Union Pacific Railroad Co. Inc. were named in the complaint filed Sept. 30 at the U.S. District Court, Central District of California.
The carmakers accused the railroad operators of conspiring to apply and enforce rail fuel surcharges to generate profits in 2003. Together, they control 90% of rail freight traffic in the U.S. at the time of the alleged conspiracy.
Hyundai and Kia are seeking to recover damages and costs from the railroad companies for the "injuries" sustained by the carmakers as a result of the rail operators' alleged price fixing.
A spokeswoman from BNSF told S&P Global Market Intelligence in an email that the company is reviewing the filings. "These allegations are not new and we have strongly denied these accusations for well over a decade."
CSX said it "does not comment on pending litigation," while Union Pacific Railroad said "the claims are meritless" and that the company plans "to vigorously defend ourselves in court."
Norfolk Southern Railway did not immediately respond to a request for comment.
