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Choof.org "News"

June 18, 2004

ADM: Price Fixer of the World

The Wall Street Journal reports: "Archer-Daniels-Midland Co. said it agreed to pay $400 million to settle a nearly nine-year-old civil suit alleging it rigged prices of a corn sweetener.

[...]

"The proposed settlement, subject to approval by a federal judge in Peoria, Ill., is the largest legal bill yet by the Decatur, Ill., grain-processing giant in connection with its price-fixing scandal of the mid-1990s.

[...]

"When news broke in 1995 of a raid on ADM headquarters by antitrust investigators, civil attorneys raced to file this lawsuit on speculation that something would turn up on high-fructose corn syrup. Indeed, the Federal Bureau of Investigation had managed to secretly record ADM executives at meetings with executives of rival makers of lysine, a livestock feed additive and much smaller product category.

"The Justice Department wrung a $100 million fine and confession from ADM in 1997 about lysine and citric acid, and sent three ADM executives to prison, but the government dropped its investigation of corn sweetener.

Posted by chris at June 18, 2004 09:08 AM

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