JP Morgan joins Goldman as firm sued over aluminum supplies

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JP Morgan was sued with Goldman Sachs over claims it restrained aluminum supplies and drove up prices.

Bloomberg News reports that the complaint was filed by a Jacksonville, Florida, direct purchaser, Master Screens, and by individual plaintiff Daniel Price Bart of Tallahassee, who is described in the filing as a 'purchaser of beverages sold in aluminum cans.'

The banks are accused in the complaint filed Tuesday in federal court in Tallahassee of racketeering and conspiring with the London Metal Exchange, hoarding aluminum in Detroit-area warehouses and violating federal antitrust laws. Goldman Sachs was sued on August 1st over similar claims by a Michigan company.

'By inserting itself into a healthy industry producing widely needed commodities, severely degrading functionality and widely distributing costs while itself benefiting, Goldman Sachs and JPMorgan couldn’t fit a more archetypal description of a parasite on the markets,' according to the Florida complaint.

'There are no queues at our warehouses and we believe this suit has no merit,' Brian Marchiony, a spokesman for New York-based JPMorgan Chase, said in an e-mail.

'We believe this suit is without merit and we intend to vigorously contest it,' Michael DuVally, a spokesman for New York-based Goldman Sachs, said in an e-mail. 'We also note that aluminum prices are down 40% from their peak in 2006.'

To access the full Bloomberg article hit the link below.

JPMorgan Sued With Goldman in Aluminum Antitrust Case

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