Wall Street Banks and Metal Merchants Slapped with a Lawsuit Over Zinc

haute lawyer zinc

Wall Street banks, metal merchants and the London Metal Exchange have been hit will a lawsuit by Duncan Galvanizing. As one of the oldest galvanizers in the U.S., the company claims Goldman Sachs Group Inc., JPMorgan Chase & Co., metal warehouse operators and the London Metal Exchange have artificially inflated zinc prices.

Duncan Galvanizing alleges the parties have been conspiring to control the U.S. zinc price beginning in 2010. The lawsuit is seeking class action status. There have been 26 other lawsuits that have alleged the same claims over price fixing in the aluminum market in the United States.

Goldman Sachs has said it will contest the lawsuit while JPMorgan and Glencore, a mining and commodities trading group, have declined to comment. The London Metal Exchange also hasn’t responded about the lawsuit.

Many major companies have complained about the long wait times and inflated prices at metals warehouses. Coca Cola and MillersCoors have all voiced their concerns over the rising costs of aluminum. The companies use the metal to produce beverage cans.

The lawsuit contends the parties involved have created a restrain trade in zinc, creating long lines for metals and an unnecessary shuttling between warehouses for no reason.

Details and photo courtesy of Reuters