Reuters writer Mark Weinraub reported yesterday that, “Global grain trader and food processor Archer Daniels Midland Co allegedly manipulated the price of ethanol to profit from a short position it was holding in the derivatives market, according to a lawsuit by a rival firm.
“AOT Holdings, a Swiss company that owns an energy trading subsidiary, filed the class action complaint late on Wednesday in U.S. District Court’s Central District of Illinois Urbana Division, claiming damages from ADM’s actions of up to $6.33 million.
“The lawsuit follows reporting by Reuters last year that ADM’s ethanol selling had led traders to complain to S&P Global Platts, which provides benchmark pricing for the physical ethanol contract at different U.S. delivery points including Chicago.”
The Reuters article noted that, “Illinois-based ADM, a major ethanol producer, said in an email that it did not comment on pending litigation.”
