Local Farmers, Weskan Grain, and Colorado Pacific Railroad File Antitrust Lawsuit Against Union Pacific Railroad and Kansas & Oklahoma Railroad

"Defendants have harmed Farmer Plaintiffs by reducing profits they receive for their grain"

NEW YORK, Jan. 28, 2026 /PRNewswire/ -- Thirteen Kansas- and Colorado-based farmers, Weskan Grain and Colorado Pacific Railroad (CXR), two subsidiaries of Soloviev Group, yesterday filed an antitrust lawsuit in the U.S. District Court for the District of Kansas against Kansas & Oklahoma Railroad (K&O), LLC and Union Pacific Railroad Company (UP), the largest railroad in the world based on market capitalization (Docket No. 2:26-cv-02053). The lawsuit, filed by Ajamie LLP and Sharp Law LLP, alleges that the Defendants engaged in conduct designed "to stifle competition from a newly rehabilitated rail line and preserve control over westward shipments of grain."

Stefan Soloviev, Chairman of Weskan Grain and Colorado Pacific Railroad, stated, "This is not about attacking railroads. It is about restoring balance, transparency, and accountability to a system that rural America depends on. Fair access and fair pricing are essential if we want agriculture in this country to thrive for generations to come."

According to Tom Ajamie, Managing Partner at Ajamie LLP, "Through a secret agreement with the Kansas & Oklahoma Railroad to impose an exorbitant fees on rail traffic from western Kansas to eastern Colorado, Union Pacific Railroad Company has erected competitive and financial barriers on the railroad tracks it owns in the region that increase transportation costs and transit times, making it difficult for local grain farmers to earn a fair price for their crops. Union Pacific Railroad Company is preventing farmers and everyone else from obtaining lower prices."

"Union Pacific Railroad Company is currently trying to merge with Norfolk Southern to form a transcontinental freight railroad, citing various bottlenecks across the country that slow down freight rail transit. With this lawsuit, Weskan Grain and Colorado Pacific Railroad also seek to make freight rail transportation more efficient by making it easier for rail traffic to move east to west on multiple lines, not just those owned by Union Pacific Railroad Company," Ajamie added.

The following excerpts are quoted directly from the 29-page complaint filed in the U.S. District Court for the District of Kansas.

"This is a case about a multibillion-dollar behemoth in the railroad industry (UP) secretly agreeing and conspiring with a short-line railroad owner-operator (K&O) to stifle competition from a newly rehabilitated rail line and preserve control over westward shipments of grain from Lane, Scott, Wichita, and Greeley Counties in Kansas and in Kiowa County, Colorado (the "Relevant Market")."

"Through their secret agreement – including a "paper barrier" – and related misconduct, Defendants have (i) fixed, raised, and/or stabilized transportation prices for the westward shipment of grain in the Relevant Market; (ii) allocated markets between themselves; (iii) harmed Plaintiffs through higher prices and lost profits; and (iv) eliminated competition in the Relevant Market. As a result, Defendants violated Sections 1 and 2 of the Sherman Act (15 U.S.C. §§ 1-2), and Kansas and Colorado state competition laws."

"Grain farmers and shippers in the Relevant Market must access West Coast markets to remain competitive, as these markets contain several of the largest mills and ports. These farmers and shippers must use nearby trains to transport their grain to West Coast markets, as trucks and distant rail lines are too expensive."

"UP owns the UP Lease Track and leases it to K&O pursuant to a 1997 lease agreement (the "1997 Lease"). The UP Lease Track connects to the K&O-owned Great Bend Line to the east and the CXR-owned Towner Line to the west."

"Between roughly 1996 and 2018, parties could not transport grain west on the Towner Line due to its condition."

"CXR attempted to give shippers and farmers in the Relevant Market an alternative and more direct route west by purchasing the Towner Line in early 2018 and rehabilitating it. The line reopened for freight service in 2019."

"Shortly after CXR acquired the Towner Line in 2018, Defendants secretly and unlawfully amended the 1997 Lease … As part of the 2019 amendment, Defendants agreed to impose a significant interchange fee on any railcar that originated or terminated on the UP Lease Track and interchanged with the Towner Line (the "Interchange Fee")."

"Based on information and belief, the Interchange Fee exceeds $500 per railcar, making it cost-prohibitive for parties shipping grain west from the Relevant Market to use the Towner Line."

"In fact, no westbound railcar carrying any commodity has shipped from the Relevant Market and travelled over the Towner Line in the more than six years since the Interchange Fee was adopted. Defendants, therefore, have used the Interchange Fee to unlawfully maintain their dominance over westbound shipments from the Relevant Market."

"By increasing the cost of shipping grain west from the Relevant Market and preventing use of the Towner Line, Defendants have (i) decreased the amount Farmer Plaintiffs receive for their grain, (ii) increased the amount Weskan pays to transport grain west from the Relevant Market, and (iii) significantly reduced the amount of revenue that CXR generates from the Towner Line."

The following background provides additional context on the parties involved.

Deeply committed to the long-term health of domestic agriculture, Stefan Soloviev has invested extensively in land conservation and sustainable farming initiatives across Kansas and Colorado. His work reflects a lifelong attachment to the stewardship of farmland, open spaces, and the communities that depend on them—not only as economic engines, but as essential components of America's cultural and environmental heritage.

The Farmer Plaintiffs include D&L Farms, GP, Scott City, Kansas; E&D Farms, GP, Marienthal, Kansas; D&C Farms, GP, Marienthal, Kansas; L&E Farms, GP, Leoti, Kansas; North Four Farms, GP, Marienthal, Kansas; Marienthal Grain LLC, Marienthal, Kansas; D&A Farms, GP, Dighton, Kansas; Hineman Land & Cattle, Inc., Dighton, Kansas; Hineman Ranch, L.L.C., Dighton, Kansas; Circle C Farms, Inc., Scott City, Kansas; Steven Compton, Scott City, Kansas; Mark Sanders, Towner, Colorado; and JLD Partnership, Eads, Colorado.

About Weskan Grain
Weskan Grain prides itself on being farmer-focused and prioritizes market access, speed, experience, and reliability from its rail served locations in Sheridan Lake, CO, Galatea, CO, Tribune, KS, and two locations in Scott City, KS, including five other truck served locations. For more information, visit weskangrain.com.

About Soloviev Group
The Soloviev Group is a multi-industry corporation. It is ranked as the 14^th largest landowner in the United States and has interests in grain production, transportation, livestock, commercial real estate, hospitality, and renewable energy. For more information, visit solovievgroup.com

About Ajamie LLP
Ajamie LLP is a unique boutique litigation firm with a proven track record of securing large recoveries for victims of financial fraud in trials and arbitrations, alongside a long history of defending corporations in complex commercial litigation. The firm is widely recognized for its cross-border representation in complex litigation and has the skills and resources to represent clients globally. For more information, visit ajamie.com.

SOURCE The Soloviev Group