OEMGN Files Suit Against Two Distributors and Several Manufacturers Alleging a Boycott, Conspiracy

A New York auto glass distributor has filed suit against two other auto glass distributors and several manufacturers alleging they have conspired against the company and boycotted it in an attempt to eliminate it from the market. O.E.M. Glass Network Inc. and Brooklyn Wholesale Glass Inc. (known together as OEMGN) filed the suit against Mygrant Glass Company Inc., Interstate Glass of Amityville NY LLC, Metro Glass Distributing Inc., Xinyi Auto Glass North America Corp., Vitro S.A.B. de C.V., Vitro Automotive Glass LLC, Fuyao Glass America Inc., Auto Temp Inc. and Sika Corp. on February 6 in the U.S. District Court for the Eastern District of New York.

The plaintiff alleges Mygrant and Interstate, specifically, “abused their market heft to convince OEMGN’s suppliers, the manufacturer defendants, to agree to cut off product sales to OEMGN, refuse further dealings with it, and take measures to preclude OEMGN from obtaining these manufacturers’ products through alternative channels.”

In the suit OEMGN says it “offer[s] retailers competitively low prices, particularly on more expensive aftermarket auto glass products.”

“This ultimately results in lower prices to consumers,” writes the company. “It also presents a disruptive threat to entrenched wholesalers like Mygrant, which is the largest independent aftermarket auto glass wholesaler in the nation, and Interstate.”

The company goes on to allege that “to suppress the competitive threat posed by OEMGN, defendants have conspired to put it out of business.”

“Mygrant and Interstate have vowed to discontinue purchasing from auto glass and urethane manufacturers that continue to deal with OEMGN,” writes OEMGN in the complaint. “Because Mygrant and Interstate’s combined multi-million-dollar purchases far exceed OEMGN’s purchases, each manufacturer defendant has agreed to join the conspiracy.”

The company further alleges it “has been unable to purchase the aftermarket auto glass products needed to maintain a sufficiently voluminous and diverse stock to compete viably,” due to the defendants’ alleged actions.

The plaintiff says it learned about the alleged conspiracy from the manufacturer defendants, who OEMGN say “have repeatedly told OEMGN, point blank, that they would no longer sell products to OEMGN due to the pressure exerted by Mygrant and Interstate.”

OEMGN opened in late 2013, according to the complaint, and says its competitors (Interstate in particular) have described it as a “price-cutter.” The company alleges Mygrant and Interstate “planted the roots of their scheme in or about the end of 2013 and have continuously enforced and expanded it to the present date.”

The company alleges each of the manufacturers have stopped selling auto glass parts and urethane to it over time, and that various officials have claimed that it was at the behest of Mygrant and Interstate officials.

OEGMN are seeking “damages, in an amount to be proven at trial, to be trebled according to law, plus interest—including prejudgment interest,” along with attorneys’ fees and the cost of the suit. OEGMN is represented by David Scupp and Daniel Vitelli of Constantine Cannon in New York.

At press time, the defendants had not yet responded to the suit.

To read the complaint, click here.

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7 Responses to OEMGN Files Suit Against Two Distributors and Several Manufacturers Alleging a Boycott, Conspiracy

  1. itsdoeshappen says:

    I will not say whom I am, but I got cut off of truck load buying as a result of one of the above named company’s pressure put on a manufacturer …

  2. Pingback: Court Extends Time to Respond, Along with Page Count, in Auto Glass Distribution Boycott Case | glassBYTEs.com

  3. bumper says:

    The Windshield Replacement Business in USA has taken a very dangerous turn.
    Most windshield replacement business are installing aftermarket poor quality Chinese made glass.
    As a car dealer we ordered, and just had a PGW DOT-563 installed in a 2015 Subaru Outback (FW 03919) that was total crap. DOT563 SHENZHEN AUTOMOTIVE GLASS MANUFACTURING.
    Seems the 563 factory makes XYG, PGW, and most likely others. At any rate, the car isn’t drivable, because the distortions are so severe in the glass.
    The one thing, the general public has to learn is that nothing matters but the DOT number. Safelite swore up and down that their glass is all made in their own U.S. factories. Guess what the DOT number they gave me was for their proposed windshield? DOT-563. ABRA said they use only PGW glass. Guess what DOT number they brought out? Yep, DOT-563. That’s not even counting the dozens of lies the original 563 installer told, including swearing he was putting in a Pilkington windshield.)”
    ALL your suppliers know dot563 is no good. they still carry it because it is the cheapest glass you can find, cheaper even than other Chinese dot459, dot485, dot788…
    While big wholesale suppliers fight to control the market, the consumer is endangered because of poor quality windshields installed.

    • Zane Frazar says:

      I disagree with this statement only because I have seen many distortions in OEM glass strait from the automobile factory.

    • Zane Frazar says:

      I disagree with this statement only because I have seen many distortions in OEM glass straight from the automobile factory.

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