Dive Brief:
- According to the NY Attorney General, Casella Waste Systems reached an agreement with the state of New York as part of a settlement.
- The waste and recycling company will pay the state $100,000 for restrictive contracting practices in the collection of non-hazardous waste and unlawfully restraining competition in an area that includes 10 counties. The hauler was also cited for dominating the market through the acquisition of smaller competitors.
- Casella is also required to change its contracts and reduce monetary penalties levied against consumers who choose an alternate hauler. The company must also report future purchases to the Attorney General’s office.
Dive Insight:
The Attorney General's office uncovered that Casella's contracts with customers required they sign with the hauler for up to five years, and face exorbitant fees if they wanted to cancel before the time period had expired. Contracts also allowed Casella to match competitor pricing. Casella is now prohibited from enrolling customers in service agreements that exceed a two-year timespan.
This is the second time the hauler was cited for this issue. In 2002 and 2011, Casella reached a similar settlement with the Attorney General’s office in Vermont.
As disclosed in SEC filings, Casella CEO John W. Casella sold 10,118 shares on July 3. On the same date, the Director of Casella, Douglas R. Casella, sold 9,882 shares of company stock.
Casella also runs electronics recycling in Vermont. The company began operating Vermont’s e-waste program in January, after Good Point Recycling, the company who operated the program for the past three years, lost the bid to Casella. At the time, Good Point alleged that its business was jeopardized by improper procurement practices by the state.
