Copper Tubing Cartel Action to Move Forward

In Carrier Corporation et al. v. Outokumpu Oyj et al., the Sixth Circuit Court of Appeals reinstated a suit filed by an air conditioner and refrigeration company, Carrier Corporation, accusing copper tubing manufacturer, Outokumpu Oyj, of engaging in a long-running conspiracy to strangle the U.S. market for “ACR” copper tubes.  The Sixth Circuit held that Carrier’s suit presented valid arguments, despite largely drawing from the results of a European investigation into the alleged cartel activity, and “[t]he mere fact that the complaint borrows its substance from the [European Commission] decision and then builds on the EC’s findings does not render its allegations any less valid. … [E]ven if all of the facts taken from the EC decisions were stripped from the complaint, Carrier’s complaint still offers additional allegations.”  The court also rejected Outokumpu’s argument that Carrier failed to state a claim, holding that Carrier was not required to explicitly detail how each of the defendant’s various branches participated in the alleged cartel conspiracy.

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