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IN BRIEF / AGRIBUSINESS

Judge to Dismiss Suit Alleging Price Fixing

July 14, 2001|Bloomberg News

A federal judge said he intends to dismiss a class-action lawsuit alleging that Archer Daniels Midland Co., Cargill Inc., Tate & Lyle and Cerestar fix prices in the $2-billion market for high-fructose corn syrup.

U.S. District Judge Michael M. Mihm told lawyers in a conference call Wednesday that he plans to dismiss the lawsuit filed in September 1995 by PepsiCo Inc., the Coca-Cola Co. and 24 other food companies.

The suit alleged that ADM, Cargill and the other two companies colluded as far back as 1991 about the price of high-fructose corn syrup, a sweetener used in soft drinks and candy.

The litigation stemmed from a 1995 FBI raid on ADM headquarters in Decatur, Ill. That raid resulted in conspiracy convictions and prison sentences for three company executives, including former Vice Chairman Michael Andreas, nephew of longtime ADM Chairman Dwayne O. Andreas, and a $100-million fine for fixing the price of lysine, an animal-feed supplement.

Shares in ADM rose 21 cents to close at $14.16 on the NYSE.

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