Antitrust Law Daily Wrap Up, ANTITRUST—S.D.N.Y.: Goldman Sachs, JPMorgan Chase excused from aluminum price fixing suit, (Mar 5, 2015)

By Greg Hammond, J.D.

The Goldman Sachs Group, Inc. and JPMorgan Chase & Co. have been released from a suit alleging that the companies, which supposedly operate both metals warehouse storage businesses and the commodities trading arms of several investment banks, engaged in anticompetitive acts that drove up prices for aluminum. In granting the companies’ motion to dismiss, the federal district court in New York determined that purchaser plaintiffs failed to set forth specific facts suggesting any participation by specific entities in the allegedly unlawful conduct (In re Aluminum Warehousing Antitrust Litigation, March 4, 2015, Forrest, K.).

At issue in this case were the proposed third amended complaint filed by direct purchaser plaintiffs and the joint amended complaint from Agfa Corp., Agfa Graphics, N.V., Mag Instrument, Inc., and Eastman Kodak Co., alleging that Goldman Sachs, JPMorgan Chase, Glencore International AG, Glencore UK Ltd., and Pacorini Metals AG engaged in a conspiracy to restrain the output of aluminum among the London Metal Exchange Ltd.

The court dismissed the five defendants, finding that the proposed third amended complaint and joint amended complaint “lump” the defendants together within a grouping with several affiliated companies. Specifically, the court noted that absent allegations that corporate formalities have been ignored, the defendants were presumed to be legally separate. However, because there were no specific facts alleged that suggested participation by any one of the specific defendants in the allegedly unlawful conduct, the complaints were insufficient under basic pleading standards. The plaintiffs’ motions for leave to amend their complaints were therefore denied to the extent they seek to join Goldman Sachs, JPMorgan Chase, Glencore, and Pacorini as defendants.

The case number is 13-md-2481 (KBF).

Attorneys: Benjamin M. McGovern (Holland & Knight, LLP) for Goldman Sachs Group, Inc. Jennifer Lynn Giordano (Latham & Watkins LLP) for London Metal Exchange Ltd. Henry Liu (Covington & Burling LLP) for JP Morgan Chase & Co. Jay B. Kasner, John M. Nannes and John H. Lyons (Skadden, Arps, Slate, Meagher & Flom LLP) for Pacorini Metals AG. Derek Y. Brandt (Simmons Browder Gianaris Angelides & Bardnerd LLC) and Garrett W. Wotkyns (Schneider Wallace Cottrell Brayton Konecky, LLP) for Agfa Corp. Allan Steyer (Steyer Lowenthal Boodrookas Alvarez & Smith LLP) for Mag Instrument, Inc. Andrea B. Bierstein (Hanly Conroy Bierstein Sheridan Fisher & Hayes, LLP) for Eastman Kodak Co. Chelsea Rebekah McLean (Curtis, Mallet-Prevost, Colt & Mosle LLP) for Glencore Ltd.

Companies: Goldman Sachs Group, Inc.; JPMorgan Chase & Co.; Glencore International AG; Glencore UK Ltd.; Pacorini Metals AG; Agfa Corp.; Agfa Graphics, N.V.; Mag Instrument, Inc.; Eastman Kodak Co.; London Metal Exchange Ltd.

Cases: Antitrust NewYorkNews