On Monday the US Supreme Court refused to review certification for a class of containerboard buyers who say several paper-industry giants colluded to overcharge them, leaving in place a circuit split declined to halt a class action lawsuit against several containerboard manufacturers, which could now face trial on claims of price fixing.
The justices left in place a federal judge’s certification of the antitrust class action against manufacturers including International Paper, Weyerhaeuser and Georgia-Pacific, reported Reuters. The companies argued that individually negotiated pricing regimes with the buyers should preclude class action certification.
The defendants argue that between 2004 and 2010 the manufacturers conspired to manipulate prices by closing or idling mills to restrict production of the material, attempting 15 coordinated price increases during that time.
The defendants sought class certification, and the trial court allowed it, a decision upheld by the Chicago-based 7th US Circuit Court of Appeals last August. That court said the buyers had shown there was proof common to the class members showing they were injured by the anti-competitive behavior.
“Purchasers tendered extensive evidence that, if believed, would be enough to prove the existence of the alleged conspiracy,” the appeals court said, adding that the evidence is largely circumstantial.
The manufacturers appealed to the Supreme Court, but were denied and the case will move forward.
Full Content: Reuters
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