Goldman, LME hit with further legal action over aluminium stocks

Goldman Sachs Group, two of its subsidiaries and the London Metal Exchange have been hit with another antitrust lawsuit alleging that they conspired to boost wait times for aluminium and to manipulate metal prices and premiums.

Miami-based door and glass enclosure manufacturer Peterson Industries contends that Goldman Sachs, following its acquisition of warehousing company Metro International Trade Services in 2010, also took advantage of LME rules to boost daily rental fees and profits, according to a class-action complaint filed on September 20 in the federal court in the US District Court for the Southern District of New York. "Since Goldman Sachs entered the warehouse business, the time it takes buyers to get metal from the warehouses has ballooned to more than 16 months, up from six...

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This article was first published by AMM

September 30, 2013

09:38 GMT

New York