Tomato Packer Alleges Vertical Price Fixing by Can Manufacturer

In Stanislaus Food Products Co. v. USS-Posco Industries, tomato packer Stanislaus Food Products Co., accused steelmaker USS-Posco Industries (UPI) of engaging in a vertical price fixing scheme with Silgan – a can manufacturer, to restrain the steel and tin trade.  The complaint filed in the Northern District of California alleges that 1) Silgan, who is not named in the complaint, along with UPI used their sales meetings to mount a clandestine conspiracy against Stanislaus, as a result of which the price Stanislaus paid for cans went up depite the prices of steel going down; and 2) UPI conspired with its parent companies to corner the market for tin-plate and to illegally jack up the price. In its motion to dismiss UPI contends that it cannot conspire with its parent company under the Copperweld single entity doctrine. 

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