Common
Lysine price-fixing conspiracy
1990s effort to raise the price of lysine
Lysine price-fixing conspiracy
The lysine price-fixing conspiracy was an organized effort during the mid-1990s to raise the price of the animal feed additive lysine. It involved five companies that had commercialized high-tech fermentation technologies, including Archer Daniels Midland (ADM), Ajinomoto, Kyowa Hakko Kogyo, Sewon America Inc. and Cheil Jedang Ltd. A criminal investigation resulted in fines and three-year prison sentences for three executives of ADM who colluded with the other companies to fix prices. The other four companies settled with the United States Department of Justice Antitrust Division in September through December 1996. Each firm and four executives from the Asian firms pleaded guilty as part of a plea bargain to aid in further investigation against ADM. The cartel had been able to raise lysine prices 70% within their first nine months of cooperation. The investigation yielded $105 million in criminal fines, a record antitrust penalty at the time, including a $70 million fine against ADM...
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