Parker Waichman LLP is investigating a potential class action lawsuit on behalf of aluminum customers who have been forced to pay more for the metal because of alleged financial chicanery by Goldman Sachs, the giant financial services firm. Goldman and owners of other major metals warehouses were subpoenaed by the Commodity Futures Trading Commission as part of an inquiry into pricing on the aluminum market. These irregularities are believed to have cost consumers billions of dollars since 2010. If you or someone you know has been impacted by increases in the price of aluminum caused by Goldman Sachs, you may have valuable legal rights. Call Parker Waichman LLP today for a free, no-obligation evaluation of your case.
Federal Regulators Investigate Goldman Due to Aluminum Pricing Complaints
Federal regulators have subpoenaed Goldman Sachs while investigating complaints that the company’s metals warehouses created deliberate delays to inflate the price of aluminum.
Goldman and owners of other major metals warehouses were subpoenaed by the Commodity Futures Trading Commission as part of its inquiry into irregularities in the aluminum market. These irregularities may have cost consumers billions of dollars since 2010.
Internal documents, emails, correspondences, voice recordings and other records concerning the warehouse operations (dating back to January 2010) are the targets of the subpoenas, according to two people familiar with the documents who spoke to the New York Times. According to the subpoenas, the federal inquiry has 30 areas of special interest.
Goldman Believed to Have Deliberately Caused Costly Delivery Delays
Goldman acquired Metropolitan International Trade Services, a chain of Detroit-area metals warehouses, in 2010. Soon afterward, beverage makers and manufacturers began complaining that the new owner was limiting metal outflow, which caused long delivery delays. Delays expanded from a six-week stint in 2012 to about 16 months this year. Consequently metal owners are forced to pay larger costs for storage of their metal, as they pay rent by the day. And because of the formula used to set aluminum prices on the spot market, the delays end up raising the price of aluminum paid by most manufacturers — even when the metal in question was not warehoused.
The bottom line: Industry analysts and beverage makers estimate that the extensive delivery delays have cost manufacturers and consumers more than $5 billion.
Class Action Lawsuits Against Goldman
Beverage manufacturers and the aluminum sheet supply company Novelis have asked the Justice Department to look into whether the warehouse operations violated antitrust laws. However, according to The New York Times, it is not known whether a formal inquiry has been started. Some aluminum owners have filed class-action suits against Goldman.
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