The revived lawsuit against Potash Corp., Agrium Inc., Mosaic Co. and four Russian and Belarussian potash companies has broad implications not only for potash prices but legally as well. That’s because the lawsuit is addressing activities taken outside of the U.S. but whose consequences impacted U.S. citizens and firms within the U.S. The lawsuit states the seven firms controlled 71% of world potash supplies in 2008 and that the firms acted together to reduce supplies and increase prices. If the case is allowed to move forward, it could set precedence for U.S. courts to allow other anti-trust lawsuits to be brought against other cartels. Hmmmm... OPEC maybe?
The case itself has not yet gone to court. The defendants deny the allegations and are fighting allowing the case to proceed. The plaintiffs are firms which buy potash and not U.S. regulators, but the U.S. Department of Justice and U.S. Federal Trade Commission have submitted filings on behalf of the plaintiffs.
These observations and facts are contained in a story written by Jeff Gray and carried in Toronto’s The Globe and Mail July 10. Please check full article for more details.
