Amcor and Visy pay out after price fixing allegations

By Rory Harrington

- Last updated on GMT

Related tags Cartel

Amcor and Visy pay out after price fixing allegations
Amcor and Visy paid out more than A$97m (€74m) last week to more than 1,000 companies in settlement payments over an alleged cardboard packaging price fixing cartel in the Australian market.

The move follows an out of court settlement with Jarra Creek in March 2011 following allegations that top executives from the two packaging companies had conspired more than a decade ago to fix prices for corrugated fibreboard packaging (CFP).

The action, filed in 2006, acclaimed that the price fixing ring operated until 2003 and included parties that had purchased and paid more than A$100,000 between 200 and 2005. The original class action included more than 4,500 firms.

The original lawsuit alleged that players from the food and beverage sectors had suffered losses because of the cartel – including producers of fresh fruit and vegetables, meat, milk, beer and wine - as well as those from the pharmaceutical industry.

Amcor pays majority

Under the terms of the legal agreement reached earlier this year, Amcor paid A$63.3m, with Visy paying the balance.

Maurice Blackburn, lawyers acting for Jarra Creek, confirmed payment notices had been sent to eligible parties on 8 December. They estimated that all cash should have been distributed by today (14 December).

"Some larger businesses have received over $1 million and others smaller amounts reflecting the value of their claims as assessed by an independent economist,"​ the law firm’s senior associate Richard Ryan said in a statement.

He added: "The group members include businesses from many industries across Australia, including many struggling fruit and vegetable growers.”

The class action settlement deed said that the law firm would receive A$25m for its services in the action against Amcor and Visy.

Related topics Processing & Packaging

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