Aug 07, 2013 | 05:56 PM
COMMENT: Superior case puts physical mart on trial
NEW YORK The debate over London Metal Exchange warehousing has had class-action lawsuit written all over it for some time.
As long ago as June 2011, US law firm Hagens Berman launched an investigation into claims that JP Morgan Chase&Co., Glencore International Plc. and Goldman Sachs Group Inc. were artificially inflating metal prices through their ownership of LME-listed warehouses.
Little has been heard of that investigation subsequently.
But Mich.-based consumer Superior Extrusion Inc. has this month filed a class-action lawsuit to the district court in the same state, alleging anti-competitive behaviour in warehousing by the LME and Goldman Sachs in connection with aluminum (amm.com, Aug. 2).
Both Goldman Sachs and the LME said they will defend themselves vigorously against the allegations.
Goldman Sachs is named because the company owns warehousing firm Metro International Trade Services LLC. Queues to get metal out of Metros Detroit warehouses sometimes reach 18 months. ....
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