A New York-based healthcare services company, KPH Healthcare Services, Inc., has taken legal action against several prominent US sugar producers, accusing them of artificially inflating granulated sugar prices. Filed as a proposed class-action lawsuit on March 14 in Manhattan federal court, the complaint seeks unspecified triple damages and demands a jury trial.

The defendants named in the court filing include ASR Group International, Inc., American Sugar Refining, Inc., Domino Foods, Inc., United Sugar Producers & Refiners Cooperative F/K/A United Sugars Corp., Michigan Sugar Co., Commodity Information, Inc., and Richard Wisisten.

According to the lawsuit, KPH Healthcare Services alleges that the defendants engaged in a conspiracy to drive up the price of granulated sugar, affecting various sectors such as food and beverage manufacturers, retailers, foodservice companies, and distributors. The complaint indicates that this alleged conspiracy began as early as January 1, 2019, although the exact date remains unspecified.

ASR Group, one of the defendants, has already responded to the lawsuit, stating, "There is no basis for this case, and we intend to vigorously defend it." However, there have been no immediate comments from the other defendants or from KPH Healthcare Services.

The origins of the case trace back to the $315 million acquisition of Imperial Sugar Co. by US Sugar Corp. This acquisition, which the US Department of Justice (DOJ) attempted to block with a federal lawsuit, was contested on the grounds that it would further concentrate the US sugar industry and drive prices higher. Despite the DOJ's efforts, the case was decided in favor of the merger in September 2022. The subsequent appeal, made by the DOJ, was also unsuccessful in July 2023.

KPH Healthcare Services, Inc., the plaintiff in this case, is a national provider of pharmaceutical and healthcare services that controls Kinney Drug Stores in the Northeast.

The case, titled KPH Healthcare Services, Inc. v ASR Group International Inc. et al, is being heard in the US District Court for the Southern District of New York under case number 1:24-cv-01941.