DRY CLEANING & LAUNDRY INSTITUTE OF DETROIT, INC. FILES LAWSUIT AGAINST PRICE-FIXING DISTRIBUTORS
DRY CLEANING & LAUNDRY INSTITUTE OF DETROIT, INC. FILES LAWSUIT
AGAINST PRICE-FIXING DISTRIBUTORS
DETROIT, Nov. 18 /PRNewswire/ -- The Dry Cleaning & Laundry Institute of Detroit, Inc., and seven owners of dry cleaners, laundries and laundromats, filed suit Nov. 15 in the United States District Court in Detroit against two distributors of dry cleaning and laundry supplies and three of their officers.
The suit alleges that the distributors and their officers conspired to fix the prices of dry cleaning and laundry supplies throughout the state of Michigan over at least a 10-year period between 1979 and 1989. Damages are sought on behalf of all dry cleaners, laundries and laundromats which purchased supplies from the defendants during the conspiracy.
The defendant distributors, Flom's Corporation and J. Levin Sons Co., are both located in Detroit. The distributors and their officers, Flom's President George Tarnoff, Levin President Bernard M. Levin and Levin's secretary, Arnold A. Levin, pleaded guilty Nov. 14 in the Federal Court in Detroit to criminal price-fixing charges filed by the United States Department of Justice.
Under the terms of their plea agreements, the defendants will pay fines totaling $1,250,000 to the federal government. The plea agreements also provide that Tarnoff and the Levins may receive prison terms of up to seven months.
In pleading guilty, the defendants admitted that they had discussed and agreed on prices and effective dates of price changes for dry cleaning and laundry supplies. They also admitted that the conspiracy had affected between $30 million nearly $100 million in commerce over the 10-year period. The charges followed a grand jury investigation which spanned several years.
Stephen Rosman, president of the Dry Cleaning & Laundry Institute of Detroit, stated, "It is the hope of our association that the two distributors will make every effort to repay the millions of dollars of apparent overcharges to the dry cleaners and laundries in the state of Michigan." The purpose of the Institute is to provide education to its members and the public; to analyze cleaning problems; to encourage legislative action; and to minimize abusive business practices prejudicial to the interests of its members and the public.
The Institute and the other plaintiffs are represented by the Detroit office of Miller, Canfield, Paddock and Stone.
/CONTACT: Stephen M. Rosman, president, Dry Cleaning & Laundry Institute of Detroit, Inc., 313-342-9400 or 313-363-1595 (home); or Larry J. Saylor, 313-496-7686 or 313-884-2643 (home), or Barbara L. Genereaux, 313-663-2445, both of Miller, Canfield, Paddock and Stone/ CO: Dry Cleaning & Laundry Institute of Detroit, Inc.; Flom's
Corporation; J. Levin Sons Co. ST: Michigan IN: SU: SB -- DEMON1 -- 1182 11/18/91 06:30 EST