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Adam J. Zapala

| Jun. 24, 2020

Jun. 24, 2020

Adam J. Zapala

See more on Adam J. Zapala

Cotchett, Pitre & McCarthy, LLP

Adam J. Zapala

Zapala, a partner at Cotchett, Pitre & McCarthy LLP, leverages his knowledge of antitrust law to serve as lead counsel or in other leadership positions in complex litigation matters. He said in early June that he's happy to be able to move back into his office after months of working from home.

"We're lucky to be in a two-story building," because that avoids the high-rise elevator problem with social distancing, he noted. "And with most of our support staff still working remotely, I can go into my own office, close the door, and see fewer people than I do at home with three kids."

In May, Zapala and lawyers from two other law firms filed a major antitrust complaint against energy trading companies that allegedly conspired "to manipulate, raise, fix, and tamper with the spot market price of gasoline in California" and "to share profits and shroud the existence of their scheme," enabling them to unjustly enrich themselves in violation of federal and state antitrust laws and California's Unfair Competition Law. His client is a tow-truck company allegedly damaged by inflated gas prices. Carpe Carma LLC v. SK Energy Americas Inc., 2:20-cv-04312 (C.D. Cal., filed May 12, 2020).

The complaint is one of several filed by California firms following lengthy investigations including one by the state attorney general, who has filed his own suit. "A lot of people have been looking into this for years," Zapala said. "An initial question now is where will this case be centralized. Then there will be leadership appointment proceedings."

The claims arise from a conspiracy allegedly formed after a large explosion in Torrance in 2015 severely damaged a major refinery complex that supplied about 10 percent of all gasoline in California. The defendants capitalized on the resulting supply disruption by colluding to raise gas prices. "California businesses and consumers have suffered substantial economic harm of Defendants' conduct," Zapala's complaint states.

"Our suit covers businesses not covered by the attorney general's action, which was filed on behalf of individual consumers," Zapala said. "The trucking company we represent spent hundreds of thousands of dollars a year on gas--at inflated prices. The Torrance explosion was a cover story for a price-fixing conspiracy."

In another big case, Zapala serves as co-lead class counsel for the end-payor plaintiffs in what the U.S. Department of Justice has called the largest antitrust case in history, one that accuses the auto parts industry of a vast conspiracy to raise prices. To date, the plaintiffs have recovered more than $1.1 billion. A Michigan court plans to reschedule a June hearing to approve another $200 million settlement agreement. In re: Automotive Parts Antitrust Litigation, 12-md-02311 (E.D. Mich., filed Feb. 7, 2012).

"That will close 98 percent of the case," Zapala said.

-- John Roemer

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