Date Published: 
07/10/2012

In a ruling on June 27, 2012, a US Court of Appeals surprised by reviving  a potential multi-billion dollar anti-trust case filed by potash buyers.

Potash Corp and Agrium are named along with several other firms, including a US company, four Russian and Belarusian companies.

The plaintiffs are arguing that the seven companies conspired to keep prices high.

Particularly noteworthy about the ruling, is the long reach of US law. A US lawyer is quoted as saying basically the cartel may operate outside the US, but if it pushes up US prices, they will have to live under US Anti-trust laws.  The companies are contesting the allegations.

 

Risk Management Perspective: 

This is a long-simmering risk for the firms that had been on the back burner, and maybe going away, which has suddenly re-emerged as more important.

 

Industry Group: 
Large Enterprises
Industry: 
Chemicals
Country: 
United States
Risk Class: 
Strategic
Risk Class: 
Operational
Risk Type: 
Competition
Risk Type: 
Regulatory
Risk Type: 
Compliance

Copyright © 2010 RiskOnBoard All rights reserved. Designed by CERAiT.com v2.1 Feb 02, 2011