US: Defendants want aluminum price-fixing suit tossed

Goldman Sachs, JPMorgan Chase and the London Metal Exchange are reportedly seeking the dismissal of a lawsuit accusing the groups of hoarding aluminum supplies in warehouses to manipulate prices.

The defendants argued late Tuesday in federal court in New York that plaintiffs that filed the lawsuits lack the standing to sue. The plaintiffs, they said, are aluminum consumers and did not store or trade the product.

But plaintiffs argue they were directly injured by the alleged price-fixing and market manipulation, even leading to some businesses being forced out of the aluminum market because the defendants allegedly delayed the release of aluminum from some warehouses.

The charges accuse the companies of unlawful conduct beginning May 2009. The plaintiffs were allowed to file three separate lawsuits to seek class action status. Those groups are direct purchasers, commercial end-users and consumer-end users, say reports.

Full Content: Reuters

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