Verra Mobity Faces Federal Class Action Over Unfair Toll Practices

Verra Mobility last week told investors that it had finally returned to profitability in the wake of the virus scare that sunk its toll road and red light camera business. Now the Arizona-based firm, formerly known as American Traffic Solutions (ATS), could lose all of the financial progress it has made thanks to a new class action lawsuit filed in a Los Angeles, California, federal courthouse. The suit claims Verra Mobility has been engaged in unfair practices that harm consumers through the 2018 ATS acquisition and merger with Highway Toll Administration, which created Verra Mobility.

“This acquisition substantially lessened competition, tended to monopolize, and resulted in monopolies by Verra in the relevant markets and sub-markets for third-party administration of electronic tolls for rental cars,” the lawsuit filed by rival toll operator PlusPass stated. “The consolidation of these companies into one supplier has excluded PlusPass from competition in these markets and inflated prices for rental car companies, and in the downstream markets for car renters’, use of electronic toll services.”