Atkore Inc. (ATKR) Faces Class Action Lawsuits Over Alleged Price-Fixing Scheme: What Investors Need to Know

Samuel ReedSaturday, Apr 19, 2025 10:32 am ET
67min read

The recent surge of legal actions against

(NYSE: ATKR) has sent shockwaves through investor circles, particularly for those who held shares during a critical period of alleged anticompetitive conduct. Two prominent law firms—Rosen Law Firm and Bleichmar Fonti & Auld LLP—have filed class action lawsuits accusing the company of orchestrating a price-fixing scheme in the PVC pipe industry, leading to inflated prices and subsequent financial fallout. This article dissects the allegations, their implications, and what investors must do to protect their interests.

The Allegations: A Price-Fixing Conspiracy

The lawsuits, filed on behalf of shareholders who purchased Atkore stock between August 2, 2022, and February 3, 2025, allege that the company colluded with competitors to artificially raise prices of PVC pipes—a staple in construction and electrical infrastructure. By manipulating prices through coordinated actions, including the use of the OPIS pricing service, Atkore and its co-conspirators allegedly generated unsustainable profits while misleading investors about the sustainability of their business model.

The claims were amplified by a 2024 report from activist investor ManBear, which highlighted irregularities in PVC pricing patterns, and a February 2025 subpoena from the U.S. Department of Justice Antitrust Division, seeking documents related to Atkore’s pricing practices. When the scheme’s alleged exposure led to a collapse in PVC prices, the company’s stock plummeted nearly 20% on February 4, 2025, as it reported reduced earnings and a $75 million cut to its guidance tied to its PVC business.

Legal Basis and Investor Impact

The lawsuits hinge on violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, which prohibit fraud and misrepresentation in securities transactions. Plaintiffs argue that Atkore’s executives misled investors by failing to disclose the price-fixing scheme, overstating business prospects, and allowing false statements to circulate. Once the truth entered the market, the company’s stock value cratered, with many investors suffering losses exceeding $100,000.

The case’s significance is underscored by the involvement of high-profile law firms. Rosen Law Firm, which has recovered over $1 billion for investors in prior securities cases, and Bleichmar Fonti & Auld LLP, recognized as a Titan of the Plaintiffs’ Bar, have taken the lead. Their track records suggest a strong push for accountability, with the latter recently securing a $900 million settlement from Tesla in a related case.

The Deadline and Investor Action

A critical deadline looms: April 23, 2025, is the cut-off for shareholders seeking to act as lead plaintiffs. Even those not seeking leadership roles are urged to contact the firms to preserve their rights. The lawsuits are pending in the U.S. District Court for the Northern District of Illinois, with Bleichmar’s case (Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Atkore Inc.) already filed under case number 25-cv-01851.

While the court has yet to certify a class, the stakes are high. The lawsuits cite over $75 million in direct losses tied to the PVC business alone, and the broader market impact of antitrust investigations often leads to prolonged uncertainty for companies. For context, similar antitrust cases—such as those in the technology and pharmaceutical sectors—have resulted in settlements ranging from $100 million to over $1 billion, depending on the scope of the wrongdoing.

Conclusion: Weighing the Risks and Rewards

Atkore’s situation presents a cautionary tale for investors in cyclical industries reliant on commodity pricing. The PVC pipe market, which accounts for a significant portion of the company’s revenue, is now under intense scrutiny. While the lawsuits underscore the risks of collusion, they also highlight the potential for recovery if the plaintiffs prevail.

The data paints a stark picture: ATKR’s stock has lost over 40% of its value since mid-2023, even before the February 2025 crash, reflecting broader concerns about the sustainability of its pricing strategy. With the DOJ’s subpoena and the class action deadlines approaching, shareholders holding during the class period (August 2, 2022–February 3, 2025) must act swiftly.

For those invested in ATKR, the path forward is clear: consult legal counsel to explore rights under the class actions, as the potential for recovery hinges on timely participation. The case serves as a reminder that transparency and ethical business practices remain paramount in maintaining investor trust—a lesson that could reshape the PVC industry’s landscape for years to come.