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Reuters reported Thursday that a US judge has given metal purchasers the go ahead to pursue claims against Wall Street banks and commodity merchants for allegedly conspiring to drive up aluminum prices by reducing supply.
Reuters reported Thursday that a US judge has given metal purchasers the go ahead to pursue claims against Wall Street banks and commodity merchants for allegedly conspiring to drive up aluminum prices by reducing supply.
As quoted in the market news:
U.S. District Judge Katherine Forrest in Manhattan said metals purchasers may pursue claims against affiliates of Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM) and mining company Glencore Plc (LSE:GLEN), and well as aluminum warehouse operators such as Metro International, Henry Bath and Pacorini Metals USA.
Purchasers had accused the defendants of colluding since 2009 to raise banks’ trading profits and warehouse companies’ revenues, causing an increase in Platts Midwest Premium, a component used in setting aluminum prices. They said the collusion led to higher storage costs, delays of up to 16 months to fill orders, and increases in the prices of industrial products such as soft drink cans and airplanes.
