ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, December 10, 1996 TAG: 9612100112
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: SAN FRANCISCO
Archer Daniels Midland Co. and three other companies accused of fixing the price of citric acid agreed Monday to pay $94 million to several 7-Up bottlers and other companies that use the food preservative.
ADM, which said in September it would contribute $35 million toward the settlement, did not admit wrongdoing.
The settlement was filed in San Francisco federal court Monday, said Joseph Cotchett, attorney for the plaintiffs.
``We think this is an excellent result for the class and for all the people of the United States,'' said Cotchett. ``You can't make soft drinks, you can't can fruits or vegetables, you can't make detergents without citric acid.''
The settlement is the third legal hit ADM has taken for price-fixing in as many months.
In October, the company agreed to pay $100 million - the largest criminal antitrust fine in history - and pleaded guilty to federal antitrust fixing prices for lysine and citric acid.
And last week a federal grand jury in Chicago indicted three former ADM officials for lysine price-fixing.
The company has acknowledged the Justice Department is investigating its citric acid dealings.
``We are looking into price-fixing on the international level - the possibility of conspiracy,'' said department spokesman Joe Krovisky in Washington.
Aside from ADM paying $35 million, Haarman & Reimer Corp. will pay $46 million, Jungbunzlauer Inc. $7 million and Hoffman-LaRoche Inc. $5.6 million.
None of the companies admitted wrongdoing in the settlement.
The final defendant, Minneapolis-based Cargill Inc., has balked at a settlement.
``We emphatically and repeatedly said from the first that the suit had no merit,'' said Cargill spokesman Allan Holbert. ``We'll continue to defend our conduct.''
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