Kodak Lawsuits Contends Conspiracy
ROCHESTER, NY—Eastman Kodak is hauling a number of financial heavyweights to court, including Goldman Sachs Group and JPMorgan Chase & Co., alleging these companies conspired with commodities traders, hedge funds and other interests to manipulate commodities markets and breach antitrust laws at Kodak's expense, the Rochester Business Journal reported.
The suit, filed July 28, claims Goldman Sachs and nine other U.S. and international concerns artificially caused the price of aluminum to spike by hoarding the materials in warehouses and shuffling ingots among them to mask their alleged scheme. Further, the suit alleges these companies agreed to limit the supply of aluminum leaving the warehouses they controlled.
Kodak also contends that these companies traded metal—vital to Kodak's commercial printing-based products—among themselves to give the illusion that orders were being shipped.
The transactions among the defendants, which include Metro International Trade Services, Glencore LTD and Pacorini Metals USA, lacked a legitimate economic rationale other than to create "artificial scarcity," the newspaper reported, citing the 52-page suit.
Kodak is seeking triple compensation for the damages it is able to prove it suffered.