NEW YORK — Buyers of a food ingredient from Epogee LLC are suing David Protein, which acquired Epogee in May, for allegedly engaging in unlawful monopolization in violation of federal antitrust laws. David Protein acquired Epogee through “secretive and collusive conduct,” using control over esterified propoxylated glycerol (EPG), an ingredient used to lower fat in products, to exclude competitors from using EPG and to create an artificial monopoly, according to the lawsuit, which was filed June 2 in the US District Court for the Southern District of New York.

The three plaintiffs – Own Your Hunger LLC, Lighten Up Foods LLC and Defiant Foods LLC – all manufacture low-calorie food products using EPG as an ingredient. Defendants are Linus Technology, Inc., Epogee and Peter Rahal. Linus Technology operates under the trade name David Protein and manufactures protein bars and other food products, making the company a competitor of three plaintiffs. Epogee is the exclusive manufacturer of EPG worldwide. Rahal founded Linus Technology, and he also founded RXBAR before selling the company to the Kellogg Co.

David Protein will not comment at this time, according to the company.

The plaintiffs listed collective injuries of about $107,000 in lost sales, research and development investments of about $449,000, collective ongoing operational losses of about $15,000 per month, and collective and inventory write-offs of about $85,000. The plaintiffs are entitled to treble damages, according to the lawsuit, which also requests a temporary restraining order to keep the defendants from restricting, limiting or denying access to EPG to existing customers and qualified food manufacturers who previously had access.

EPG, a patented fat replacement ingredient, reduces calories from fat by 92% while maintaining traditional taste and texture, according to the lawsuit. Making EPG involves proprietary fermentation technology and specialized production methods that cannot be replicated easily by competitors. Plaintiffs and other food manufacturers invested hundreds of thousands of dollars in research and development, manufacturing infrastructure, marketing campaigns and product development specifically tailored to EPG, according to the lawsuit.

“These brands fundamentally restructured their entire business models around EPG as their core competitive advantage and ‘secret sauce’ ingredient, making EPG access essential to their survival,” the lawsuit said. “Epogee provided the bricks, while plaintiffs and other brands built the house.”

This year, Epogee first reported shortages for certain types of EPG on March 25 but expected to have the product ready in May, according to the lawsuit. Public disclosure of David Protein acquiring Epogee came on May 27. Epogee on May 29 informed customers that Epogee no longer would accept new orders of EPG and was winding down accounts following the acquisition. Epogee, by May 29, already had purchased, secured and stockpiled two years of EPG supply, an amount exceeding the one-year shelf life of David Protein bars, according to the lawsuit.