Two vitamin C manufacturers based in China are reportedly arguing in a New York court that their government is responsible for their price-fixing. A class-action suit has been filed in US District Court in New York accusing two vitamin C companies of raising prices between December 2001 and June 2006. The media are reporting that the defendants will use the foreign sovereign compulsion doctrine defense, a rare argument that claims companies that break US law are protected if their own governments coerced the companies into that legal violation. The defense is seldom successful, say experts. Jury selection was scheduled for Monday.
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