L.A. County Files Lawsuit Against Private Equity and Fire Truck Manufacturers
Los Angeles County has initiated legal action against a private equity firm and manufacturers of fire trucks, citing breaches of antitrust and unfair competition regulations. The lawsuit claims that years of mergers and acquisitions have drastically reduced the market for new fire trucks, engines, and related equipment, resulting in significant price increases.
Prices for fire-related equipment have reportedly doubled in many cases. The lawsuit, filed on February 12 by the L.A. County Office of County Counsel, states that the reduced competition among fewer companies has led to delays in the delivery of essential parts, leaving the fire department unable to quickly repair out-of-commission vehicles.
Impact on Public Safety and Fire Readiness
The lawsuit highlights monopolistic practices that have hindered the prompt acquisition of necessary fire trucks and engines. Given the increasing fire dangers exacerbated by climate change—illustrated by recent California wildfires—the issue of firefighting readiness in the county has become even more urgent.
“These companies have driven up prices and delayed deliveries to unprecedented lengths, burdening our communities,” stated First District Supervisor and Board Chair Hilda Solis. “Fire trucks are critical for public safety, and we are taking action to hold these companies accountable and ensure fair competition.”
Parties Involved in the Suit
The lawsuit is directed against American Industrial Partners, along with fire truck manufacturers REV Group, Oshkosh Corp., and Boise Mobile Equipment, for allegedly breaching federal and state antitrust laws. L.A. County, with state support, seeks to reverse these mergers and recover the excess costs incurred.
The lawsuit explicitly states, “Our fire departments do not deserve this. The taxpayers who rely on our firefighters do not deserve this. The extraction of excessive private funds from the public must cease.”
Concerns Over Budget and Equipment
During a budget meeting, L.A. County Fire Chief Anthony Marrone pointed out that 22% of their fire vehicles require immediate replacement. He detailed how price hikes and delivery delays have compounded issues for the department, noting that the cost of a fire engine has risen from $600,000 to about $1.1 million in recent years.
Anticompetitive Practices Exposed
The lawsuit accuses Oshkosh of engaging in anticompetitive behavior by compelling customers of its subsidiary, Pierce Manufacturing, to exclusively buy proprietary parts despite cheaper alternatives being available. This practice reportedly leads to substantial overcharges for replacement parts.
Defense from Oshkosh and Next Steps
In response to the lawsuit, Oshkosh has stated that it will contest the allegations, asserting that they are without merit. The company emphasized its commitment to providing safe, high-quality fire trucks while continuing to invest in U.S. operations to meet rising demand.
The County Counsel’s Affirmative Litigation and Consumer Protection Division will manage the civil case, which was filed in the United States District Court in Los Angeles. Supervisor Kathryn Barger expressed confidence that taxpayers would appreciate efforts to challenge this perceived monopoly.
