Amcor rejects claimants' estimate of damages
Market watch top headlines
Australian reports
- Aust markets: Aussie markets receive positive leads
- Aust dollar report: $A opens higher on firm US data
- Aust credit close: Bonds weaker after rebound
World reports
- World commodities: Oil prices climb higher
- World markets: Stocks rise on positive economic data
MELBOURNE, March 19 AAP
March 19 2010, 4:39PM
Packager Amcor Ltd has rejected an estimation of damages by an expert retained by claimants in a class action against Amcor over alleged price-fixing.
Law firm Maurice Blackburn, on instructions from Jarra Creek Central Packing Shed Pty Ltd, is conducting the Federal Court class action against Amcor and Visy Board Pty Ltd on behalf of purchasers of corrugated fibreboard packaging.
The class action seeks damages and other relief for losses suffered as a result of cartel conduct by Amcor and Visy.
Jarra Creek had released to the parties an economist's report in which it was estimated that customers of Amcor had suffered damages of $466 million, plus an estimated $231 million in interest, Amcor said in a statement to the Australian Securities Exchange on Friday.
Maurice Blackburn principal Ben Slade on Friday confirmed the estimation of the economist, Professor Daniel Rubenfeld of the University of California (Berkeley), but said he could not reveal any other details of the confidential report.
The figures referred to by Amcor relate to Amcor alone.
Amcor said it "strongly disputes" the estimate of damages and would refute it with its own experts in the course of arguing the case before the court.
It is estimated about 17,000 companies in Australia were major customers for cardboard boxes, each buying more than $100,000 worth of the goods between May 2000 and May 2005.
Maurice Blackburn has said it has a list of hundreds of those customers that alleged they were victims of cartel behaviour.
Amcor said on Friday that the economist's estimate of damages was based on "a range of disputed and contentious facts and assumptions".
"Amcor strongly disputes the estimate put forward and will dispute the facts and assumptions upon which the report appears to be based," Amcor said.
"Amcor is continuing to vigorously defend the claim and will, in the course of the litigation, put forward independent expert evidence refuting the incorrect assumptions and conclusions in the plaintiff's economist report."
Amcor said it was too early to provide any reliable assessment of possible damages if its defence were unsuccessful in whole or in part.
It also was too early to say what contribution could be expected from the other defendant in the case, Visy.
Mr Slade said it was disappointing that Amcor had indicated that it would continue to vigorously defend the class action rather than address its customers' claims.
He said the class action group members would be disappointed that Amcor was insisting on continuing to defend the claim given that the cartel was originally exposed by Amcor's revelations to the Australian Competition and Consumer Commission.
"Visy, its partner in this cartel, has pleaded guilty to cartel conduct and has paid a $36 million fine," Mr Slade said.
"It is time for Amcor and Visy to work with us to resolve their customers' claims and to ensure that they get reasonable compensation for their losses.
"If they will not do so, the case will go to trial."
Maurice Blackburn said the claimants' evidence had now been filed in court, and the trial was expected to start in March 2011.
Maurice Blackburn commenced the class action in April 2006.
The late businessman Richard Pratt and his Visy group of companies admitted in 2007 to manipulating the cardboard market.
Visy was fined $36 million, the largest fine in Australia's history.
Amcor shares rose three cents to $6.11.
By Trevor Chappell
