The City of Milwaukee filed a class action lawsuit Thursday against three fire truck manufacturers and a trade association, alleging they conspired to manipulate the national market for fire apparatus through price-fixing and artificial supply restrictions.
The 84-page complaint filed in the U.S. District Court for the Western District of Wisconsin names Oshkosh Corporation, Rev Group Inc., Rosenbauer America LLC, and the Fire Apparatus Manufacturers' Association as defendants. Milwaukee accuses the companies of working together to consolidate the market, charge inflated prices, and create delivery backlogs that compromise public safety.
"Defendants' conduct to consolidate the market, charge supra-competitive prices, and backlog delivery of new fire apparatus has diminished the availability of fire trucks, impairing firefighters' ability to respond effectively and leaving the public less protected during fire and other emergencies," the city wrote in its complaint.
According to Milwaukee, fire truck costs have nearly doubled over the past decade, with prices reaching as high as $1 million for a standard fire engine. The city purchased 23 fire trucks during this period, some of which it says still have not been delivered despite the orders being placed years ago.
The lawsuit seeks to represent a nationwide class of purchasers, including individuals, fire departments, municipalities and other entities that bought fire trucks from the defendants from 2016 onward. Milwaukee is represented by the local firm O'Neil, Cannon, Hollman, DeJong & Laing.
Milwaukee claims the manufacturers exploited increasing demand for updated firefighting equipment by deliberately delaying production to create artificial scarcity. The complaint describes how production backlogs grew dramatically across the industry, with Rev Group serving as a prime example. Between 2020 and 2023, Rev Group's production backlog increased from approximately $1 billion worth of fire department orders to $3.6 billion, representing a 41% increase, according to the complaint.
The city says this pattern extended beyond Rev Group to other major manufacturers, resulting in fire departments waiting years for essential equipment with no clear delivery timeline. The delays have also made obtaining replacement parts extremely difficult, further hampering fire departments' operational capabilities.
To compound the financial impact, Milwaukee alleges the defendants implemented "floating prices" that allowed costs to increase between the time of purchase and delivery. Under this system, a fire truck ordered in 2021 but delivered in 2023 could cost significantly more than the original agreed-upon price, according to the complaint.
The lawsuit characterizes the defendants as operating as a "cartel" and alleges that the Fire Apparatus Manufacturers' Association facilitated coordination between the competing companies. Milwaukee claims the trade organization arranged in-person meetings where the manufacturers could share sensitive internal information and strategize about future cooperation.
These alleged meetings allowed the companies to coordinate their market manipulation efforts while maintaining the appearance of competition, according to the city. The complaint suggests this coordination was essential to maintaining the conspiracy across multiple large manufacturers that would normally compete against each other.
The case highlights broader concerns about market concentration in specialized government equipment sectors. Fire trucks represent critical public safety infrastructure, and delays in delivery or inflated prices can directly impact emergency response capabilities in communities across the country.
Milwaukee's allegations center on claims that the defendants violated federal antitrust laws by engaging in horizontal price-fixing and market allocation schemes. If proven, such conduct would constitute per se violations of the Sherman Act, which prohibits agreements that restrain trade.
The timing of the lawsuit coincides with increased scrutiny of market concentration across various industries. Federal antitrust enforcers have placed greater emphasis on challenging coordinated conduct that harms competition, particularly in sectors involving essential services or government procurement.
For fire departments nationwide, the alleged conspiracy has created operational challenges that extend beyond financial costs. Extended delivery times mean departments cannot replace aging equipment or expand their fleets to meet growing community needs. The lack of available replacement parts compounds these problems by forcing departments to keep older, potentially less reliable equipment in service longer than recommended.
The class action nature of the lawsuit means that if Milwaukee prevails, damages could potentially reach into the hundreds of millions of dollars when accounting for overcharges paid by fire departments and municipalities nationwide over the alleged conspiracy period.
The defendants have not yet responded publicly to the allegations. The case will now proceed through federal court, where the manufacturers will have the opportunity to challenge both the factual allegations and the legal theories underlying Milwaukee's claims. Discovery in antitrust cases often involves extensive document production and depositions to uncover evidence of any coordinated conduct between competitors.