Goldman Sachs, BASF, HSBC and ICBC Standard Bank have agreed to a $20 million settlement to resolve a long-running antitrust dispute over platinum price fixing. The settlement addresses allegations that the companies manipulated the prices of platinum and palladium, two important metals used in various industries.
The settlement, which was preliminarily approved by U.S. District Judge Gregory Woods in Manhattan, was filed late Friday, according to court documents reviewed Monday. The platinum price fixing lawsuit accuses the four defendants of participating in a conspiracy to manipulate platinum and palladium prices from Jan. 1, 2008, to Nov. 30, 2014. The alleged manipulation included sharing confidential customer information, anticipating expected price changes and placing fraudulent “bogus” orders.
Platinum and palladium, both of which are crucial for the production of catalysts to reduce vehicle emissions, as well as in dentistry and jewelry, were reportedly subject to price fixing to benefit the financial interests of banks. Plaintiffs, buyers of these metals and related futures contracts, argued that these arrangements artificially depressed prices, thereby reducing costs for the banks and their customers, and helped the institutions avoid losses on their futures contracts.
The plaintiffs’ lawyers praised the settlement as a fair and favorable solution. They intend to seek up to a third of the settlement amount, or about $6.67 million, for legal fees and up to $600,000 for expenses. Final approval of the settlement is expected in January.
The case is part of a broader trend of litigation in the Manhattan court, where major banks are facing allegations of collusion in various markets, including interest rate benchmarks, U.S. Treasury bonds, currencies and commodities. The case is officially titled In re: Platinum and palladium cartel proceedingsU.S. District Court, Southern District of New York, No. 14-09391.
According to Reuters, all defendants denied any wrongdoing and agreed to settle the case.
Source: Reuters
