Containerboard Price-Fixing Lawsuit Moves Forward
In antitrust cases, the defendants have the option to file individual motions to dismiss. But the more common route is for one party to take the lead on the motion to dismiss and the others join that effort, according to Emmanuel Hur- tado, an associate at Stubbs Alderton & Markiles. Meanwhile, eyes are on containerboard producers to see if they try to raise prices again despite the lawsuit. The major producers already nearly simultaneously implement- ed one hike earlier this year, following two last year. “While some investors have currently expressed con- cerns around the ability of producers to implement price in- creases amid an ongoing lawsuit, we believe that any such announcements will be predicated on market conditions,” said Michael Roxland, of Truist Securities. Conditions include costs, inventories and supply and demand. The six percent reduction in North American con- tainerboard production capacity so far this year should be supportive of pricing, Roxland said, but “we believe further closures, an uptick in demand, and resolution to tariff-relat- ed uncertainty in the market may be necessary for another price increase in 2025.” To be successful, a price increase likely would need to be announced within the next month and occur by October to get ahead of the typical seasonal demand slowdown, Roxland explained. The Artuso case is in its very early stages and will likely take a while to advance, Hurtado suggested. A standard next step would be for the court to review the proposed class in the complaint and whether changes are needed.
Industry sources report that the class-action antitrust law- suit brought against eight of the largest containerboard producers in the United States is progressing. Observers are monitoring whether the companies will attempt addi- tional price increases this year despite the lawsuit. In July, Artuso Pastry Foods Corp. filed a complaint in a federal court in Illinois accusing containerboard man- ufacturers of colluding in a price-fixing scheme during a series of seven price increases from November 2020 to the present. The defendants include Cascades, Geor- gia-Pacific, Graphic Packaging International, Greif, Inter- national Paper, Packaging Corporation of America, Pratt Industries and Smurfit Westrock. Court documents show that summonses were issued to all the defendants last week. Additional documents show that this month Pratt and Packaging Corporation of America formally retained counsel, with the latest related activity occurring August 19. The case immediately drew industry attention, al- though some observers questioned whether this might be the type of frivolous complaint that corporations fre- quently face. That doesn’t appear to be the case, in the view of an attorney with antitrust defense expertise who reviewed the complaint but is not involved in the case.
AMERICAN-MADE. IN STOCK. READY TO SHIP. Provident doctor blades are c u stom-engineered and ready to ship from Appleton, Wisconsin. � Steel Blades Premium Swedish steel for precision metering. � Nano-Treated Blades 6-1 Ox longer lifespan, less downtime. � Coated Blades Low-friction for extended life & quality. � Synthetic & Plastic Blades Superior ink control & safety.
No delays. MADE No downtime. =IN THE= Just quality blades. *USA• providentblades.com
8
www.boardconvertingnews.com
September 1, 2025
Made with FlippingBook - PDF hosting