JP Morgan, Goldman Sachs, aluminum manufacturers agree to settlement in price-fixing suit

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JP Morgan, Goldman Sachs aluminum price-fixing class action lawsuit overview: 

• Who: A New York federal judge signed off on a settlement agreement between Reynolds Consumer Products LLC and Southwire Co. LLC and JP Morgan and Goldman Sachs. 
• Why: The settlement resolved claims that Goldman Sachs and JP Morgan colluded with metal warehouses to fix the price of aluminum. 
• Where: The class action lawsuit is being litigated in New York federal court.

A pair of aluminum manufacturers have reached an agreement with JP Morgan, Goldman Sachs and others that will put an end to price-fixing claims made against the financial institutions.

Aluminum manufacturers Reynolds Consumer Products LLC and Southwire Co. LLC claimed JP Morgan, Goldman Sachs and others worked with metal warehouses to raise the premiums for aluminum, Law360 reports. 

A New York federal judge signed off on the settlement agreement, which calls for the dismissal without prejudice of the class action lawsuit lobbied at JP Morgan and Goldman Sachs. 

Reynolds and Southwire were the last two companies who had open complaints in a consolidated class action lawsuit dating back to 2013, Law360 reports.  

Aluminum buyers claimed JP Morgan and Goldman Sachs violated the Sherman Antitrust Act by making deals with metal warehouses aimed at restricting the trade of aluminum as part of an alleged effort to control the metal’s price. 

JP Morgan, Goldman Sachs accused of stockpiling aluminum 

JP Morgan and Goldman Sachs were specifically accused of stockpiling aluminum, with some metal allegedly staying for more than 500 days at a time, at Detroit-based London Metal Exchange warehouses, Law360 reports. 

The class action lawsuit went through multiple amended versions with the third version of the complaint reportedly dismissed in 2016 before being revived by the Second Circuit in 2019. 

Buyers were reportedly unable to get class certification for the complaint, however, while summary judgment bids were subsequently granted in 2021 that dismissed certain other plaintiffs, Law360 reports. 

An employee filed a separate class action lawsuit against Goldman Sachs in February that alleged the company mismanaged its employee retirement plan. 

Do you believe the financial institutions attempted to fix the price of aluminum? Let us know in the comments. 

The plaintiffs are represented by Anand C. Mathew of Palmersheim & Mathew LLP and David A. Ettinger of Honigman LLP.

The aluminum price-fixing class action lawsuit is In re: Aluminum Warehousing Antitrust Litigation, Case No. 1:13-md-02481, in the U.S. District Court for the Southern District of New York.

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