International Paper and UPM accused of price overstating
004. The lawyers hired by the US paper consumers filed a suit against 20 companies, including International Paper and UPM-Kymenne Corp accusing them of forcing the consumers to acquire paper at artificially boosted prices since January 1990 up to the present day.
Jun 10, 2004. /Lesprom Network/. The lawyers hired by the US paper consumers filed a suit against 20 companies, including International Paper and UPM-Kymenne Corp accusing them of forcing the consumers to acquire paper at artificially boosted prices since January 1990 up to the present day.
According to Dow Jones agency, the suit (plaintiff Charles J.Gardella) was filed to Bridgeport county court (Connecticut, USA) on Tuesday. Charles J. Gardella demands the compensation of the loss suffered, ‘the amount of the compensation has not been defined yet but shall not be less than a triple amount previewed by the anti-trust legislation’.
The suit followed after a number of EU officials investigating anti-cartel agreements performed a number of raids in May 2004. The investigators were searching for the proof of illegal agreements on prices reached between timber industry companies.
Finnish UPM, after conducting an internal investigation, claimed at least one case of price fixing in January 2004 and was freed from legal responsibility in the EU and Canada, and started cooperating with the US investigators.
In spite of the actions taken by the US federal government, any plaintiff may file a private suit that may result in the payment of significant compensations by both companies.