US: Aluminum price-fixing suit grows

Eastman Kodak has reportedly joined plaintiffs in a lawsuit accusing top financial groups of manipulating aluminum prices.

Kodak filed a complaint in New York accusing Goldman Sachs, JPMorgan Chase, their warehouses and the London Metal Exchange of colluding to hoard aluminum stockpiles in warehouses to manipulate market supplies and prices. The allegations mirror similar allegations filed by dozens of plaintiffs that were eventually consolidated last December.

Kodak said its lawsuit is based on news reports regarding the allegations made by earlier complaints. The company noted that federal authorities are increasingly concerned with the issue.

Late last year, Assistant Attorney General for the Antitrust Division Bill Baer told the House Judiciary committee that “this is a matter we are looking at.”

Kodak’s filings argue that “there is a substantial oversupply of aluminum, especially considering the vast supplies of aluminum held in warehouses.”

JPMorgan wants cases tossed

News of Kodak’s lawsuit coincided with reports that a UK affiliate of JPMorgan asked a US judge Tuesday to dismiss the consolidated lawsuit accusing defendants of aluminum price-fixing.

According to reports, Henry Bath & Son said it never operated within the US and thus the court in New York does not have jurisdiction to hear claims against the company. A Henry Bath unit operates warehouses in various US cities.

Full content: Democrat and Chronicle

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