A U.S. judge has dismissed London Metal Exchange as a defendant from nationwide antitrust litigation accusing banks and commodity companies of conspiring to drive up aluminium prices, hurting manufacturers and purchasers.
Reuters reports that in a decision made public on Tuesday, U.S. District Judge Katherine Forrest in Manhattan concluded that the LME was an 'organ' of the UK government, and therefore immune from the lawsuit under the Foreign Sovereign Immunities Act.
Forrest acknowledged that her decision may at first glance seem 'somewhat surprising and counterintuitive,' noting that the LME is a privately-held, for-profit company subject to extensive regulation.
But she said the relevant case law 'tips decidedly' toward a grant of immunity, noting that the LME is required by law to perform 'the decidedly public function of market regulation.'
Hit the link below to access the complete Reuters article: