Amcor rejects 424m price-fixing damages estimate

Amcor has today said in a statement that Jarra Creek Central Packaging Shed, the representative applicant in the class action against the firm, has released a report that estimates the damages suffered by the firm’s customers would be around AUD466m plus AUD231 in interest.

The statement said: “Amcor strongly disputes the estimate put forward and will dispute the facts and assumptions upon which the report appears to be based.

“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.”

“It is too early for Amcor to provide any reliable assessment of possible damages that may become payable if its defence is unsuccessful in whole, or in part, or of the extent to which it may obtain contribution from the Visy companies in respect of any damages awarded,” the statement concluded.

Amcor gained immunity from prosecution by Australian competition authorities after providing information on the cartel. Visy, however, was subsequently fined AUS$36m, the largest fine for anti-competitive practices in Australian legal history.

Last year, it was revealed that at least 20,000 customers of Amcor and Visy had joined a class action over the two companies’ price-fixing arrangements that ran from 2000 to 2004.

According to The Australian today, around 5,500 parties are involved in the class action and law firm Maurice Blackburn is acting for banana packaging company Jarra Creek

The Sydney Morning Herald cites Maurice Blackburn principal Ben Slade as having confirmed the estimate but declining to reveal further details of the confidential report.

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.”

Mr Slade told the newspaper: “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.”

Amcor has already settled out of court a AUD 236m claim from Cadbury in August 2009.

In February, Amcor completed its acquisition of part of Alcan Packaging and has now rebranded the former Amcor PET Packaging business in the US as Amcor Rigid Plastics.

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