Halliburton, Schlumberger, Baker Hughes face fracking suit

Suit claims companies conspired to raise prices

A new fracking-related suit is accusing three oilfield service companies of trying to quash their competition.

On Wednesday, Cherry Canyon Resources, a Texas oil and gas partnership, sued Halliburton Co., Schlumberger Ltd. and Baker Hughes Inc. for conspiring to raise fracking services prices. The three companies are the largest publicly traded fracking services providers in the U.S.

The suit comes after the Justice Department announced on July 25 that it is investigating the “possibility of anticompetitive practices” in the fracking sector of the oilfield services industry.

“Defendants colluded to restrict and manipulate supply in order to increase prices and market share” to levels the companies saw before the fracking boom attracted independent competitors who lowered prices, Robert C. Hilliard, the lawyer for Cherry Canyon, said in the filing.

Cherry Canyon’s proposed class action seeks to represent all customers who purchased fracking services from the defendants since May 29, 2011. The suit seeks unspecified treble damages.

Read Bloomberg for more information.

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