FREQUENTLY ASKED QUESTIONS AND ANSWERS

Q. What is this lawsuit about?
A. In summary, the complaint alleges a conspiracy among Local 3 and several electrical contractors to eliminate competition by the plaintiffs in the market for telecommunications installation in the New York City metropolitan area. As an integral part of their conspiracy, the defendants have unlawfully leveraged their monopoly power over electrical installation work in order to coerce customers into using Local 3 contractors for telecommunications installation work as well, according to the lawsuit.

Q. What legal theories are you asserting?
A. The complaint asserts claims for violations of Sections 1 and 2 of the Sherman Antitrust Act, as well as state law antitrust and tortious interference claims.

Q. How big is this lawsuit?
A. The lawsuit seeks more than $50 million in damages after trebling and a permanent injunction against the defendants. If we are successful, the lawsuit will prevent the defendants and anyone acting in concert with them from further conspiring to eliminate competition by the plaintiffs in the market for telecommunications installation.

Q. If you are successful in your lawsuit, does that mean that Local 3 will no longer control the electrical installation work in New York?
A. No. The lawsuit seeks only to level the playing field by allowing effective competition in the market for telecommunications installation, not the electrical installation market. In other words, even if we prevail, Local 3 will maintain their monopoly status in the electrical installation market.

Q. Have you sought a preliminary injunction, too?
A. Not at this time.

Q. What prompted you to file this lawsuit when you did?
A. The defendants' conspiracy has been ongoing for years, and no particular incident motivated us to file suit when we did. We just reached a point where we felt that we could not stand by any longer without taking action to protect our business by stopping Local 3 and its co-coconspirators.

Q. Why did you sue only some of the Local 3 electrical contractors? What about other parties, such as general contractors or other Local 3 electrical contractors?
A. At this time, we have named as defendants those electrical contractors that our investigation has revealed were actively and intimately involved in the conspiracy along with Local 3. Our investigation is continuing, however, and, may lead to an amendment to name additional parties as defendants based on facts learned through discovery in the case.

Q. Have you sued any individual persons, such as Tommy Van Arsdale, Business Manager of Local 3?
A. No. We have sued only corporate and union entities.

Q. Is the CWA a party to the lawsuit?
A. No.

Q. Why wasn't this case brought under the labor laws?

A. This lawsuit alleges a conspiracy to eliminate competition in the telecommunications market, activity that is clearly illegal under the antitrust laws.

Q. Is this a class action?
A. No. It is brought only on behalf of the two plaintiffs, U.S.I.S. and Odyssey Group, Inc.

Q. How can I get a copy of the complaint?
A. The lawsuit is on file at the Southern District of New York, Foley Square branch, located at 500 Pearl Street. You can also download a copy at our website at www.local3antitrust.com.

Q. Who can I contact for additional information?

A. At U.S.I.S., you can call Joseph Lagana, President and CEO, at 914-358-7882. At Odyssey Group, you can call Terry McDonough, President, at 212-514-7914. If you want to speak with the attorneys involved in filing the suit, you can contact Dick Cirillo of King & Spalding at 212-556-2337.

 

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