Sage Datko  |  April 19, 2019

Category: Caustic Soda Price-Fixing

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According to a new price fixing lawsuit filed by Finch Paper against several chemical corporations, these manufacturers may be illegally colluding in order to drive up the market price of caustic soda.

Finch Paper Class Action Lawsuit

The price fixing lawsuit, filed by plaintiff Finch Paper on April 12, 2019, names several caustic soda companies as defendants, including Olin Corporation, K.A. Steel Chemicals, Occidental Petroleum Corporation, Westlake Chemical Corporation, Shin-Etsu Chemical Co., and Formosa Plastics. These corporations allegedly control approximately 90 percent of the United States caustic soda market.

According to the lawsuit, these corporations have formed a cartel in order to artificially increase the price of caustic soda. The lawsuit claims that between 2012 and the fourth quarter of 2015, the price of caustic soda was either plateaued or declining.

There was industry overcapacity and a shortage of demand for the substance, resulting in a lack of competition and low pricing. Due to these conditions, the lawsuit states that the companies producing the substance conspired with each other to form alliances in order to drive up the price.

They allegedly did this by coordinating price raises, refusing to supply the chemical to customers, refusing to competitively bid on contracts, and making false claims about the lack of caustic soda supply.

The lawsuit claims that the companies traded non-public sensitive information regarding supply and prices, as well as discussing future strategies for market manipulation. The lawsuit uses the term “cartel” to describe the relationships between these companies and claims that the price fixing agreements have resulted in a 50 percent increase in the price of caustic soda.

What is Caustic Soda?

Caustic soda is a chemical produced as a by-product of chlorine production and is also known as sodium hydroxide or lye. It is created through the electrolysis of salt water or brine and may be sold in either solid or liquid forms.

Caustic soda is used in a variety of industries, including chemical production, food processing, water treatment, recycling, pharmaceuticals, textiles, minerals, paper, soap and detergents, and aluminum.

Is Price Fixing Illegal?

Price fixing is prohibited under U.S. federal antitrust laws like the Sherman Anti-Trust Act. According to antitrust laws, a lack of competitive conduct between companies in the same industry stymies the U.S. market, forcing purchasers and consumers to pay more for their products. Conspiring to artificially inflate product prices may be a felony.

If you work in an industry that has been affected by the caustic soda price increase, you may be able to join a price fixing lawsuit and pursue compensation for the effects of this alleged price manipulation. Filing a class action lawsuit regarding price fixing may also be a way to hold the companies involved accountable and prevent future company cartels from forming.

The Finch Paper Caustic Soda Price Fixing Lawsuit is Case No: 1:19-cv-00480 in the U.S. District Court for the Western District of New York.

Join a Free Caustic Soda Class Action Lawsuit Investigation

If your business has purchased caustic soda since 2015, you may have been affected by this alleged price-fixing scheme. Participating in this free caustic soda price-fixing class action lawsuit investigation may help you get compensation.

Learn More

This article is not legal advice. It is presented
for informational purposes only.

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One thought on Caustic Soda Price Fixing Lawsuit Calls Chemical Corporations a Cartel

  1. Ranita Reed says:

    Please add me.

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