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Goldman Sachs, JPMorgan and More Accused of Zinc Price Manipulation
May. 26, 2014 11:09AM PST
Base Metals Investing Reuters reported that this past Friday, Duncan Galvanizing Corp., one of the oldest galvanizers in the United States, accused Goldman Sachs Group Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), the London Metal Exchange and metal warehouse operators of working together to manipulate the US zinc price. Duncan alleges that they have been doing so since 2010.
Reuters reported that this past Friday, Duncan Galvanizing Corp., one of the oldest galvanizers in the United States, accused Goldman Sachs Group Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), the London Metal Exchange and metal warehouse operators of working together to manipulate the US zinc price. Duncan alleges that they have been doing so since 2010.
As quoted in the market news:
The suit, registered in the Southern District of New York, is the first to include allegations over the impact of warehousing on the smaller, niche zinc market. Zinc is used to coat steel to protect against corrosion.
The lawsuit names as defendants the mining and commodities trading group Glencore Xstrata and its Pacorini Metals USA LLC unit. Metro International Trade Services, the metal warehousing of Goldman Sachs, is also named a defendant.
The lawsuit, which seeks class action status, echoes the allegations made in 26 suits that have been consolidated into a class-action suits over alleged price fixing of the aluminum market in the United States.